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Articles on Shadow banking

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Shadow or parallel banking refers to the non-bank financial intermediaries that supply services similar to commercial banks. Jenny Evans/AAP

Explainer: shadow banking and where it came from

Shadow banking provides investors with the means to isolate risks, transfer profits, avoid regulation and increase the range of money-like financial products available for investment.
Just like the characters of The Big Short, its time to pick up the warning signs of a global financial crisis. Paramount Pictures

Shadow banking increases the risk of another global financial crisis

The financial products offered by the shadow banking sector allow investors to be further removed from their investments and banks to escape regulation, increasing the risk in the sector overall.
The cut to China’s reserve requirement ratio (RRR) can also be seen as a move against China’s unregulated shadow banking sector. Flickr/Mike Behnken

China’s monetary easing to bolster growth, tackle shadow banking

The 100 basis points cut by the People’s Bank of China is as much as about containing unregulated credit within China as a bolster to slowing growth.
The scale of China’s off-balance sheet lending may seem extensive, but it’s not the scary beast that many commentators have made it out to be. Philip Jagenstedt/Flickr

Light among the shadows: the upsides to a financial crisis in China

In recent months, talk of an emerging crisis in China’s financial sector has been getting louder. A few weeks ago such chatter reached a crescendo, at least in terms of a narrative, when two Nomura economists…

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