shadow banking system

Definition

System of non-financial institutions that borrow money in the short term and take that money to invest in long-term assets. Shadow banking systems are able to avoid standard banking regulations through the use of credit derivatives. These are also said to be one of the major problems which contributed to the subprime mortgage crisis around 2007-2008.

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You may want to try and use a shadow banking system if you think it will make things easier for you.

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Consumers discovered far too late how wary they should have been of the shadow banking system that was developing in their community.

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Part of the reason of the mortgage crisis in 2007 was due to the shadow banking system. Banks would borrow short term funds and then invest them in mortgages.

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SGD shadow calendar