shadow banking system

Hello, you have come here looking for the meaning of the word shadow banking system. In DICTIOUS you will not only get to know all the dictionary meanings for the word shadow banking system, but we will also tell you about its etymology, its characteristics and you will know how to say shadow banking system in singular and plural. Everything you need to know about the word shadow banking system you have here. The definition of the word shadow banking system will help you to be more precise and correct when speaking or writing your texts. Knowing the definition ofshadow banking system, as well as those of other words, enriches your vocabulary and provides you with more and better linguistic resources.

English

Etymology

Coined by Paul McCulley in 2007. Parallel with earlier constructions such as shadow cabinet and shadow government as names for quasi-institutions running unofficially in parallel with the official institutions.

Noun

shadow banking system (plural shadow banking systems)

  1. (derogatory, banking, finance, economics) Non-bank financial institutions, that, like banks, borrow short and in liquid forms and lend or invest long in more illiquid assets.
    • 2016, Ning Zhu, China's Guaranteed Bubble , McGraw Hill, →ISBN, page 35:
      Given the Chinese banking sector's predominance in the economy, it seems surprising that China appears to need another, parallel, shadow banking system.

Related terms

References

  1. ^ Bill Gross (2007 November 28) “Beware our shadow banking system”, in CNN / Fortune Magazine‎, archived from the original on 2007-12-02: “My Pimco colleague Paul McCulley has labeled it the "shadow banking system" because it has lain hidden for years, untouched by regulation, yet free to magically and mystically create and then package subprime loans into a host of three-letter conduits that only Wall Street wizards could explain.”

Further reading

Wikious
Boobota
Sagapedia