Chat with us, powered by LiveChat

American Confidant - Shadow Banking

Copy of Latest Podcast
Print Friendly, PDF & Email

The “shadow banking” system could easily trigger the next financial crisis. “Shadow” banks are not lending institutions like traditional banks. They are largely unregulated, for example. They have also taken over from traditional banks as the primary source of business and consumer credit.

But the shadow banking industry’s’ rapid expansion could cause serious problems if credit conditions worsen and those loans need to be repaid. Leading up to the last financial crisis, many shadow banks offered subprime loans to borrowers with poor credit profiles. They’re now repeating that pattern of behavior with another type of questionable loan.

Here’s how the shadow banking system has created another massive credit bubble that could trigger the next crisis. And why regulators are asleep at the switch.

Read the Washington Post Article Here

Bank Failure Scenario Kit - sm2



  • This field is for validation purposes and should be left unchanged.

All articles are provided as a third party analysis and do not necessarily reflect the explicit views of GSI Exchange and should not be construed as financial advice.

Precious Metals and Currency Data Powered by nFusion Solutions