Like banks, a leveraged and maturity-transforming shadow banking - TopicsExpress



          

Like banks, a leveraged and maturity-transforming shadow banking system can bevulnerable to “runs” and generate contagion risk, thereby amplifying systemic risk. Suchactivity, if unattended, can also heighten procyclicality by accelerating credit supply and assetprice increases during surges in confidence, while making precipitate falls in asset prices andcredit more likely by creating credit channels vulnerable to sudden losses of confidence
Posted on: Sat, 09 Aug 2014 07:23:20 +0000

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