What is the ‘Shadow Banking’?

  • Outsourcing of banking work by a bank
  • Financial transaction and other activities of nonbanking financial intermediary
  • Domestic banks’ foreign operations
  • Foreign bank operating in another country for banking and other activities
Monis Rasool Professor Asked on 3rd May 2015 in Finance.
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    Financial transaction and other activities of non-banking financial intermediary

    Shadow Banking is ‘Financial transaction and other activities of non-banking financial intermediary’. A financial institution network is include of non-depository bank some example like are non-bank financial institution and money market, investment banks. Shadow banking work like as intermediaries between investors and borrowers, providing credit and capital for investors.

    In other way shadow banking is differ from banking. In shadow banking, a financial institution deals in invest, credit and loan like, they don’t call deposit to public like as bank.Shadow banking also known as Shadow banking system. Shadow banking play a big role in the economy system.

    Monis Rasool Professor Answered on 3rd May 2015.
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