BUSINESS

What's lurking in the shadows of China's banks?

Asia focus, Published on 22/09/2014

» "Shadow banking" is a surprisingly colourful term for our staid economics profession. Intended or not, it conjures up images of dark, sinister, and even shady transactions. With a name like "shadow banking" it must be bad. This is unfair. While the profession lacks a uniform definition, it involves financial intermediation that takes place outside of banks — and this can be good, bad, or otherwise.