Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

Well, that's what the 'shadow' in 'shadow bank' means: less/different regulation than a normal bank.

That's not necessarily a bad thing, btw.



Where's the "bank" in this "shadow bank"? You're describing a casino with a money printer.


"Shadow banks" aren't necessarily "banks". See https://en.wikipedia.org/wiki/Shadow_banking_system

> The shadow banking system is a term for the collection of non-bank financial intermediaries (NBFIs) that provide services similar to traditional commercial banks but outside normal banking regulations.[1] Examples of NBFIs include insurance firms, pawn shops, cashier's check issuers, check cashing locations, payday lending, currency exchanges, and microloan organizations.[2][3] The phrase "shadow banking" is regarded by some as pejorative, and the term "market-based finance" has been proposed as an alternative.[4]


You're moving the goalposts a bit there


The phrase already existed. If there was no more to it than you could immediately guess from the words, then it would be a useless term.


What would you say a non shadow bank is? "Money printing" is "just" a reserve ratio near or less than 0.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: