Discussion of The Economics of Shadow Banking
نویسندگان
چکیده
The paper by Manmohan Singh covers a lot of ground, and lays out a number of very interesting issues about the nature of the shadow banking sector, and the extent to which the activities of banks and non-banks are interrelated. In particular, it points out that, in addition to deposits, a significant share of bank lending is ultimately funded by non-banks. This funding can be described as ‘indirect’ deposits managed by ‘asset managers’. Banks and non-banks are also linked through the process of collateral intermediation, which is a major form of shadow banking activity.
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