MIT professor Yasheng Huang talks about the potential dangers of
China’s shadow banking system (CSBS).
Globally, a study of the 11 largest national shadow banking systems found that they totalled to $50,000bn in 2007, fell to $47,000bn in 2008 but by late 2011 had climbed to $51,000bn, just over its estimated size before the crisis. Overall, the world wide SBS totalled to about $60 trillion as of late 2012
The shadow banking system is a key component of the U.S. economy, but the financial crisis has frozen it solid. Senior Editor Paddy Hirsch explains what shadow banking is and why it’s important enough to warrant its own bailout, called the Term Asset-Backed Securities Loan Facility, or TALF.
Shadow Banking Explained in Detail