This note describes the growing event of shadow banking as a non-regulated part of the monetary system. In the U.S., shadow banking is more significant compared to the standard banking sector in terms of assets used and it's experiencing high growth rates in Europe. The note asks whether shadow banking has more edges in relation to the traditional banking system because it's not controlled; whether it's more or less transparent; whether it provides investors with more or less security. At a time when there are limits on bank credit, borrowers may value the possibility of turning to the shadow banking. Shadow banking must not be regarded as a "pirate" sector and recent experience has shown that regulation and "great banking" frequently don't go hand in hand.
Shadow Banking case study solution
PUBLICATION DATE: November 25, 2013 PRODUCT #: IES417-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING