shadow banking system
nounEtymology 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.
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Banking, Business, Economics, Finance, Sciences Derogatory Non-bank financial institutions, that, like banks, borrow short and in liquid forms and lend or invest long in more illiquid assets.
- Meronym: private credit
- Given the Chinese banking sector's predominance in the economy, it seems surprising that China appears to need another, parallel, shadow banking system.2016, Ning Zhu, China's Guaranteed Bubble […] , McGraw Hill, →ISBN, page 35:
- Related terms
- shadow bank