Why Should You Care About Shadow Banking?

Half of the global financial system is made up of shadow banks. You have probably already used one. What are shadow banks and what to be wary of when using them.Topics covered include:What are the roles of shadow banksWhat are examples of shadow banksHow two shadow banks, Greensill Capital and Archegos Capital Management, contributed to billions of dollars in lossesHow China's massive use of shadow banks differs from the rest of the worldHow individuals investors can benefit from the careful use of shadow banks.Become a Subscriber and listen to the episode ad-free on Spotify or your preferred podcasting app. Only $4.99 per month plus tax. Subscribe here.Thanks to Mint Mobile and Clear for sponsoring the episode. Use code David to get two months of Clear for free.For more information on this episode click here.Show NotesQ+A-What is shadow banking and why does it matter? by Michelle Martin—ReutersWhat You Need to Know About the Shadow Banking System Now by Craig Kirsner—KiplingerGlobal Monitoring Report on Non-Bank Financial Intermediation 2020—Financial Stability BoardHow fintech will eat into banks’ business—The EconomistWhy is supply-chain finance, as practised by Greensill Capital, risky?—The EconomistTokio Marine defends governance over Greensill exposure by Leo Lewis, Kana Inagaki, and Ian Smith—Financial TimesRelated Episodes304: A 15% Guaranteed Return? Lending on the Fringes of Finance305: Are Banks Safe?333: How The Covid Shock Nearly Destroyed The Financial System339: How To Make Money with BlockFi, Dai and the Evolving DeFi EcosystemSee Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What this episode covers

Half of the global financial system is made up of shadow banks. You have probably already used one. What are shadow banks and what to be wary of when using them.Topics covered include:What are the roles of shadow banksWhat are examples of shadow banksHow two shadow banks, Greensill Capital and Archegos Capital Management, contributed to billions of dollars in lossesHow China's massive use of shadow banks differs from the rest of the worldHow individuals investors can benefit from the careful use of shadow banks.Become a Subscriber and listen to the episode ad-free on Spotify or your preferred podcasting app. Only $4.99 per month plus tax. Subscribe here.Thanks to Mint Mobile and Clear for sponsoring the episode. Use code David to get two months of Clear for free.For more information on this episode click here.Show NotesQ+A-What is shadow banking and why does it matter? by Michelle Martin—ReutersWhat You Need to Know About the Shadow Banking System Now by Craig Kirsner—KiplingerGlobal Monitoring Report on Non-Bank Financial Intermediation 2020—Financial Stability BoardHow fintech will eat into banks’ business—The EconomistWhy is supply-chain finance, as practised by Greensill Capital, risky?—The EconomistTokio Marine defends governance over Greensill exposure by Leo Lewis, Kana Inagaki, and Ian Smith—Financial TimesRelated Episodes304: A 15% Guaranteed Return? Lending on the Fringes of Finance305: Are Banks Safe?333: How The Covid Shock Nearly Destroyed The Financial System339: How To Make Money with BlockFi, Dai and the Evolving DeFi Ecosystem See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.