Shadow Banking Is Hurting China’s Banks — And That’s a Good Thing

"How can the world’s second-largest economy function at all? Enter shadow bankers - broadly defined as lenders outside the formal banking system. They include mom-and-pop lending operations, companies lending excess cash to each other, pawnshops, and recently tech companies running money market funds. Unlike shadow banking in the West, shadow banking in China is a necessity, helping build factories, mines, infrastructure projects, and other activities, and creating jobs."

http://blogs.cfainstitute.org/investor/2014/03/10/shadow-banking-is-hurting-chinas-banks-and-thats-a-good-thing/

Shadow banking and the global financial ecosystem

"Modern banks operate in a complex global financial ecosystem. This column argues that proper regulation requires an updating of our ideas about how they operate. Modern banks finance bond portfolios with uninsured money market instruments, and thus link cash portfolio managers and risk portfolio managers. Gone are the days when banks linked ultimate borrowers with ultimate savers via loans and deposits. The Flow of Funds should be updated to reflect the new realities.

Regulatory reform has focused on banks and how much liquidity and capital they should hold, rather than on the evolution of the broader financial ecosystem that banks are only a part of. However, understanding this ecosystem is imperative, as it can influence the types of activities banks engage in and the types of liabilities they issue."

http://www.voxeu.org/article/global-financial-ecosystem-0

What is Shadow Banking?

"The Financial Stability Board (2012) describes shadow banking as “credit intermediation involving entities and activities (fully or partially) outside the regular banking system”. This is a useful benchmark, but has two weaknesses:
First, it may cover entities that are not commonly thought of as shadow banking, such as leasing and finance companies, credit-oriented hedge funds, corporate tax vehicles, etc. (...)
Second, it describes shadow banking activities as operating primarily outside banks."

"An alternative – ‘functional’ – approach treats shadow banking as a collection of specific intermediation services. Each of them responds to its own demand factors (e.g., demand for safe assets in securitisation, the need to efficiently use scarce collateral to support a large volume of secured transactions, etc.). The functional view offers useful insights. It stresses that shadow banking is driven not only by regulatory arbitrage, but also by genuine demand, to which intermediaries respond. This implies that in order to effectively regulate shadow banking, one should consider the demand for its services and – crucially – understand how its services are being provided (Claessens et al. 2012)."

http://www.nakedcapitalism.com/2013/08/what-is-shadow-banking.html

Shadow banking, czyli kto jest bankiem, a kto udaje

Niniejszy artykuł  został poświęcony parabankom/piramidom finansowym.

,,Po upadku Amber Gold mnożą się wezwania do likwidacji parabanków lub przymusowego objęcia ich nadzorem. Utożsamianie instytucji finansowych, nieobjętych nadzorem KNF, z piramidami finansowymi jest jednak dużym uproszczeniem. Nie ma jednoznacznej definicji parabanku. Nazywanie tak każdej instytucji niebankowej, świadczącej usługi finansowe, które jednak nie są usługami bankowymi jest dużym nieporozumieniem.''

http://www.nbportal.pl/pl/np/artykuly/finanse/shadow_banking

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