Shadow Banking 影子银行
The term shadow banking refers to the extending of credit outside the regular banking system, according to the Financial Stability Board, an international body of financial regulators. There is no consensus over exactly what types of entities and activities should be categorized as shadow banking. Many would agree that it includes asset securitization vehicles, banks’ off-balance-sheet operations, and trust companies in China that have funneled money to property developers and companies that had trouble getting bank loans. Experts say the shadow banking system appeals to financial investors because it offers relatively high returns at low costs. It supplements bank lending and greases the wheels of many essential economic activities, but it also threatens the stability of the financial system because it is opaque and loosely regulated.