Sentences with phrase «shadow banking system»

The prospect of the first major default connected with the Chinese shadow banking system sent shock waves through the financial markets of emerging economies.
If banking is broken, more money might flow into the so - called shadow banking system, or into peer - to - peer lending.
The Third World War has clearly already begun, as it is a war being waged by the global shadow banking system against all of humanity.
And such a crash could be triggered by a number of events — a recession that causes widespread unemployment, rising interest rates and even global shocks like failures in China's opaque shadow banking system.
However, a collapse in the Argentine peso, civil unrest in Eastern Europe and increasing concerns over China's huge shadow banking system demonstrate how fragile the recovery remains.
The Chinese shadow banking system is now a well - known financial Frankenstein, with multiple asset management companies, wealth management products and other off - balance sheet entities providing around half the country's credit volume.
Strengthen Dodd - Frank banking regulations and crack down on Wall Street's «shadow banking system,» which Clinton describes as letting hedge funds and high - frequency traders profit disproportionately to every day investors.
Joseph characterizes the capital in this corner of the shadow banking system as «flighty» — so - called mom - and - pop investors attracted by the combination of rising home prices, flat interest rates and the opportunity to offer short - term non-amortized mortgages at 5 %, often at loan - to - value ratios exceeding 95 %, to desperate borrowers.
It goes like this: first of all, the bank is constantly scanning the horizon for smoke signals, looking for possible incipient trouble in big banks as well as the so - called «shadow banking system» (non-bank institutions that perform some bank - like functions) and trading information with other regulators.
Gross writes that these firms, «are part of the «shadow banking system» where these modern «banks» are not required to maintain reserves or even emergency levels of cash.»
The shadow banking system may be the most worrisome financial issue in decades, added Pauly, even more problematic than the sub-prime mortgage meltdown that fueled America's financial crisis.
Strengthen Dodd - Frank banking regulations and crack down on Wall Street's «shadow banking system,» which Clinton says lets hedge funds and high - frequency traders profit disproportionately compared with everyday investors.
To the contrary, the Lehman Brothers bankruptcy and the collapse of the shadow banking system exposed the economy to a severe credit shock.
In addition, we think Chinese President Xi Jinping is likely to continue the government's crackdown on corruption and the shadow banking system.
Separately, the entire approach to the other half of the financial system — the shadow banking system — where do we draw the line in terms of regulation?
The shadow banking system has escaped regulation primarily because it does not accept traditional bank deposits.
Subsequent to the subprime meltdown in 2008, the activities of the shadow banking system came under increasing scrutiny and regulations.
A shadow banking system is the group of financial intermediaries facilitating the creation of credit across the global financial system but whose members are not subject to regulatory oversight.
The shadow banking system also refers to unregulated activities by regulated institutions.
«There are increasing risks that the defaults in the shadow banking system would lead to a credit crisis.»
A lot of risk has been pushed out of commercial banks and is now in the shadow banking system, where it is not as opaque as a commercial bank.»
Think of pure investment banks Bear and Lehman, or the GSEs Fannie and Freddie, or the banks Washington Mutual and Wachovia or AIG or the growth of the shadow banking system.
«We are seeing some activities migrate into the shadow banking system to escape prudent capital, liquidity, or risk management standards,» Thomas Curry, the U.S. Comptroller of the Currency and one of the regulators that set the lending guidelines, said in an e-mailed statement.
The growth of securitisation markets (until recently) enabled non-bank financial institutions to play a greater role in credit provision, and fostered the expansion of the so - called «shadow banking system».
Over the past two years most of the worst lenders that were under pricing failed and the «shadow banking system» (e.g., CDOs) dissipated.
«There was a shadow banking system which developed» which wasn't reported to regulators.
The first is on the principles to reform the global banking system including bringing the shadow banking system, including hedge funds, into the global regulatory net.
«Every part of what has been a shadow banking system must come under the supervisory net,» he continued, arguing that the G20 summit would be the «beggining of the end» for the tax haven system.
There is strong evidence that the riskiest, worst performing mortgages were funded through the «shadow banking system» and that competition from the shadow banking system may have pressured more traditional institutions to lower their own underwriting standards and originate riskier loans.
At that point, the poisoned assets migrated to the balance sheets of the commercial banks, depleting their capital, moving the bad debt from the shadow banking system — the vehicles are part of it — to the conventional banking system.
Ths the only way these huge balance sheets could be funded was through the shadow banking system.
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