shadow banking system
English
Etymology
Coined by Paul McCulley in 2007.[1]
Noun
shadow banking system (plural shadow banking systems)
- (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.
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Related terms
- shadow bank
References
- Bill Gross (November 28, 2007), “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
shadow banking system on Wikipedia.Wikipedia