What is shadow banking? Well it isn’t that shadowy, for starters. All shadow lending refers to is lending by non-depositary institutions.
And if investors are looking for opportunities in the financial institutions sector, this is surely it.
Depending on how it is exactly measured, the assets of non-bank intermediaries have increased by about 25% since 2010, according to the Financial Stability Board.
The shadow lending market certainly took off big time before the credit crisis, but that was largely public asset-backed lending funded via what became an uncontrolled securitization market.
