Financing From Shadow Banks is on the Rise #realestate #finances #investment

Source:  Bloomberg

World Bank data show that the percent of U.S. private-sector funding provided by banks has fallen to almost the lowest point since 1960, illustrating the growing importance of non-bank financing, otherwise known as the "shadow banking system."  A strategist who first brought attention to banks misstating key benchmark lending rates during the financial crisis in 2008 is sounding the alarm bells about the economy being much more dependent on the fast-money shadow-bank financing - which is more fickle in terms of extending credit and can expand or contract much quicker.  Shadow banking includes all private-sector funding that isn't provided by deposit-taking banks, so it can include bond funds as well as hedge funds, insurance companies and pension funds.

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