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...The restrictions on payments have had a chilling effect far beyond the shadow trade in components for Russia’s war machine, as banks cut off entire categories of transactions with Moscow rather than fall...
...That would make them guardians of trillions of dollars, and significant players in the “shadow banking” system, a catch-all term for financial institutions that lend, hold or borrow money but aren’t regulated...
Catastrophic risk; AI girlfriends; HS2; shadow banking; Wegovy
...The flipside is an explosion of lending by bond funds and other investment vehicles that are often collectively called “shadow banks”....
...banking market....
...But there have long been non-bank lenders outside of regulation and new forms of shadow banking have stepped in to fill the gap....
...In 2010, when banks were first required to break out their lending to non-banks, the loans totalled just over $50bn for the entire banking sector....
...As he notes, “despite many gloomy predictions, the world avoided a recession, the banking system proved largely resilient, and major emerging market and developing economies did not suffer sudden stops”...
...Global financial supervisors are increasingly focusing on the risks arising from the shadow banking sector, which includes pension funds, family offices, trading houses and insurance firms....
...After a decade of flagging the issue, regulators must make progress on improving transparency in the shadow banking system....
...She likened the banking industry’s lack of knowledge of their exposure to private equity sponsors to their problems dealing with Archegos Capital, whose collapse in March 2021 cost six banks more than $10bn...
...Zhongzhi, the conglomerate at the centre of China’s $3tn shadow banking market, has filed for bankruptcy, saying that it was “severely insolvent”....
...The fallout has spread to China’s shadow banking sector — non-bank financial institutions that lend to higher-risk industries. Zhongzhi, one of the biggest, may have a shortfall of $36bn....
...These have increasingly inserted themselves into traditional regulated banking activities....
...Zhongzhi held a nearly 33 per cent stake in Zhongrong International Trust, a shadow banking financier, as of the end of 2022....
...“When you move something from the banking system to asset management, you move it, for the most part, from a levered system to an unlevered system,” Rowan said....
...Chinese authorities have opened a probe into Zhongzhi, one of the biggest conglomerates in the country’s sprawling shadow financing market, days after the group declared itself “severely insolvent”....
...Labour’s shadow City minister Tulip Siddiq has rebuked chancellor Jeremy Hunt for delaying the regulation of the “buy now, pay later” sector....
...Until last summer, there were few concrete links between a slowdown in China’s property sector and a domestic shadow banking industry that has for years supplied middle-class savers with high-interest products...
...Shadow financing in China frequently flows into property groups....
...banking shock would ripple through to the wider system....
...This shadow banking system now accounts for about 50 per cent of global financial services assets....
...A speedy bankruptcy in China Until last summer, there was little mention of China’s vast shadow banking industry when it came to the country’s real estate slowdown....
...’s vitally important mission and mandate: stop the unseen and unregulated buildup of systemic threats from nonbanks and stop the regulatory arbitrage that results from risk migrating from the regulated banking...
...Zhongrong and other shadow banks in the so-called trust industry sell high-yield savings products to retail investors and companies....
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