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.

Equivalents

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