Finance

The shadow banking system—comprising financial intermediaries operating outside traditional banking regulation—has emerged as a powerful, yet opaque force in global finance. From money market funds and hedge funds to securitization vehicles and peer-to-peer lending platforms, shadow banking entities provide credit, liquidity, and investment products without being subject to the same capital and liquidity requirements as commercial banks. This article critically explores the rise of shadow banking, its role in financial intermediation, and its implications for systemic risk, monetary policy, and regulatory oversight.… Read more