How much do you know about shadow banking?

• Shadow banking is a parallel financial system that operates outside of traditional banking regulations.
• It includes various non-bank intermediaries such as investment banks, hedge funds, and peer-to-peer lending platforms.
• Shadow banking serves as an intermediary between creditors and borrowers, providing credit and capital to investors and corporations.
• However, its operations pose greater market, credit, and liquidity risks compared to traditional banking.
• The growth of shadow banking has made it a critical player in the global financial system, with an estimated $92 trillion in non-bank financial assets in circulation in 2015.
• Critics argue that shadow banking was a major contributor to the 2008 financial crisis.
• Despite regulatory efforts, shadow banking remains highly leveraged and exposed to systemic risks.
• Authorities have proposed measures to regulate and limit the operation of shadow banking, but it is still not subject to the same regulations as traditional banks.
• The continued operation of shadow banking poses a potential threat to the global financial system.
• Shadow banking remains a controversial and highly debated issue in the financial industry.

Test your knowledge on the topic of shadow banking with this informative quiz. From its definition and operations to its risks and impact on the global financial system, this quiz covers it all. Challenge yourself to see how familiar you are with the controversial and highly debated issue of shadow banking. Keywords: shadow banking, non-bank intermediaries, financial system, risks, regulations, global financial system, 2008 financial crisis.