June 2015
Intermediate to advanced
600 pages
27h 11m
English
The lure of shadow banking is ever present. Governor Mark Carney, Bank of England, points to shadow banking in emerging markets as the greatest danger to the world economy.2 That’s serious. Indeed, I receive regular requests to unravel this phenomenon and why it creates such an all-round “con-attitude” every time the concept surfaces. Why did it evolve? How large and pervasive is it? Will it lead to instability and precipitate a systemic crisis? One thing is certain: Its operations are not necessarily shadowy; it’s global, it’s huge, it’s fast-moving, it’s popular, but it’s poorly understood. It can be a powerful tool for good, but if badly managed, it can be explosive. Following are some definitions to clear the air.