shadow-banking

Leading up to the crisis, market participants and policymakers failed to understand the interconnections within the "shadow banking" system.

When Lehman fell, we learned just how vulnerable shadow banking was: a global run on the system brought the world economy to its knees.

"We also have to deal with the whole shadow banking system, which has not been addressed in a coherent manner, " the G20 source said.

My colleague Hyun Song Shin at Princeton has pointed out to me lately that the shadow banking system in the US is largely European banks.

Therefore, the risks inherent in shadow banking are high at the moment, as housing prices decline and economic growth moderates.

Rather, financial markets and regulations were not mature enough to cope with disintermediation and the rise of the "shadow banking" system.

It is also unfair on the Fed, which had to stand in place of America's collapsed shadow-banking system.

The problem was not so much deregulation but regulation's failure to evolve with the so-called "shadow banking system" .

As the shadow banking system grew, our system failed to require real transparency, sufficient capital or meaningful oversight.

Regulation failed to cover the "shadow banking" sector and proved inadequate for the complex, cross-border "too big to fail" institutions.

But America's economy is now dominated by a shadow banking system of investment banks, financial firms and investment funds.

Weak consumer demand, falling property prices, and the rise of a predatory shadow banking system have stoked concerns of a hard landing.

The prospects of getting to that place of confidence depends upon important changes to the current banking and shadow banking system.

Indeed, much of the instability in the shadow banking system stemmed from using short-term wholesale funding for longer-term investment.

Eventually, so-called shadow banking made up roughly half of the American financial system.

And a new working paper of theirs sheds considerable light on the size and scope of 'shadow banking. '

Much of these flows go through the shadow banking system.

Failures in the shadow banking system fed failures in the more regulated parts of the banking system.

It should be allowed to occur in the so-called "shadow banking sector" .

He also thinks this pattern was a little-watched factor behind the boom in shadow banking before 2007.

The speculative binge was abetted by a giant "shadow banking system" in which the banks relied heavily on short-term debt.

But, going forward, we as regulators must watch closely how the shadow banking market evolves.

they also realised that the shadow banking world was creating tight interconnections between US and European banks.

"How, " asks the report, "could a huge shadow banking system emerge without provoking clear statements of official concern? "

And for years the so-called shadow banking system thrived, away from prying eyes.

The final priority is data on the "shadow banking system" which comprises non-bank financial firms that often slip below regulators' radar.

Enormous swaths of this so-called shadow banking system remain paralyzed.

Fourth, reform of international regulation to close regulatory gaps so shadow banking systems have nowhere to hide.

That happened in part because of the shadow banking system and was a mistake.

Now, the shadow banking system is facing the 21st-century equivalent of the wave of bank runs that swept America in the early 1930s.

Since 2008, large parts of the shadow banking world have all but collapsed.

But substantial gaps remain in areas like supervision, cross-border resolution, too-important-to-fail, and shadow banking systems.

This discriminatory policy forces private firms to tap the "shadow banking system. "

Banks may be lending but the larger shadow banking system is not.

Genuinely independent firms are starved of formal credit, so they rely on China's shadow banking system.

Regulators should be wary of risk migrating to the shadow banking system.

A third is that higher capital requirements would again trigger an explosive expansion of an unregulated shadow banking system.

Effectively, the "shadow banking system" has been siphoning off credit from the state-owned banks.

Lesser known is shadow banking, derivative and counter-party exposure.

The "shadow banking system" , which relied on bank finance, started to default.

The gist is that the state-owned banks themselves have created a shadow banking system to conceal lending from the eyes of the state.

Understanding this requires us to analyse banks and their interaction with the shadow banking sector.

Most of the shadow banking system is either gone or in severe difficulty.

It should drop the fatuous targeting of pay, shadow banking and rating agencies.

If too many problems arise in shadow banking under the narrow approach, there will be cries for regulatory extension.

But despite angst over its shadow banking system, the big risks are probably embedded in the real one.

(Read China Buys Shares In Major Banks As Shadow Banking Credit Grows).

But the 'shadow banking system, ' where loans are turned into securities, did 40% of consumer lending before the crisis.

We should strengthen supervision and regulation over credit rating agencies, the shadow banking system and trans-border capital flows.

It also provided cheap funding for the world's "shadow banking system" .

The country's young leasing industry is part of a shadow banking system that is growing rapidly.

We are observing an accelerated run on the shadow banking system that is leading to its unravelling.

Now investors won't buy such securities and the shadow banking system has been left for dead.

The shadow banking system poses a thorny problem too.

There is a pretty powerful precedent for the theory that a "shadow" banking system can cause or compound a crisis.

Last week saw the demise of the shadow banking system that has been created over the past 20 years.

After all, before the summer of 2007, most non-bankers had no idea that a shadow banking world even existed.

This is what has just happened, after all, with "shadow banking" .

We will bitterly regret it if we fail to divide deposit-based banks from the shadow banking system.

a lack of regulation of financial institutions, which allowed the creation of a shadow banking system;

China's shadow-banking system: Trust belt | The Economist China's shadow-banking system

The (Sizeable) Role of Rehypothecation in the Shadow Banking system