Meaning of shadow bank | Babel Free

Definitions

1. An entity that illegally performs banking functions.
   derogatory
2. An entity not subject to banking regulation that performs banking functions.

Examples

“Regulators have said there was an entire shadow bank within the official BCCI with separate books.”

“The rise of unregulated “shadow banks” and the lack of restrictions on insurers and asset managers were pinpointed as concerns – as was the growth of global banks to a scale larger than 2008 and the fear that they are again “too big to fail”.”

“The results of the experiment show that the broad policy regime performs best, with the narrow Basel III regime actually working more procyclical than the standard regime when hit with a hypothetical shock. This is because of credit is forced through the shadow-bank channel when the standard bank channel is faced with countercyclical regulation.”

CEFR level