TEXT-S&P: U.S. shadow banking supervisory framework is emerging | Reuters - 2 views
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Shadow banking encompasses a wide variety and complex set of financial entities and products that may still present an important systemic risk, but it hasn't yet filled the void traditional banking has left
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The term "shadow banking" first became prevalent in the aftermath of the financial crisis, and it lacks a universally consistent definition.
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Shadow banking encompasses not only special-purpose vehicles that are beyond the Federal Reserve's supervision
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Shadow banking is explained in this article and it is put into question whether shadow banking has the ability to replace the traditional banking system. The question of regulations regarding shadow banking is also asked and whether such regulations can be quickly and efficiently implemented. Shadow banking mimics traditional banking but it lacks the protection of a government guarantee that is available to depository institutions.