Shadow Banking and Capital Markets: Risks and Opportunities
Author(s): G30 Working Group
This study examines the proliferation of financial nonbank credit intermediation, also known as shadow banking. The study notes that unregulated or imperfectly regulated shadow banking activities, particularly those in China, undermines financial stability by way of unregulated banking structures that share similarities to the banking structures that led to the 2007-08 financial crisis in advanced economies. The study offers a series of specific policy recommendations that would identify and lower risk, with a particular focus on how credit is delivered to small and medium enterprises.
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