The Shadow Banking System: A Hidden Giant in Global Finance
Beneath the surface of the global financial system lies a complex network of non-bank financial intermediaries collectively known as the shadow banking system. Often operating outside the reach of traditional regulatory frameworks, shadow banking has grown into a multi-trillion-dollar ecosystem that supports credit creation, liquidity, and investment—but also poses systemic risks. In this article, we dive into the history, mechanics, benefits, and dangers of shadow banking, and examine how this opaque sector could shape the next financial crisis.… Read more