Saturday, April 23, 2011

Economic Concept of the Week: The Shadow Banking System

"By June 2008, the U.S. shadow banking system was approximately the same size as the U.S. traditional depository banking system. The equivalent of a bank run occurred within the shadow banking system during 2007-2008, when investors stopped providing funds to (or through) many entities in the system. Disruption in the shadow banking system is a key component of the ongoing subprime mortgage crisis."

http://en.m.wikipedia.org/wiki/Shadow_banking_system