Financial institutions- Shadow banking 

Overview

• Since shadow banking has only recently become a large segment of financial services provision, its economic role is not well understood. 
• The financial stability board (FSB, 2011) defines shadow banking broadly as "credit intermediation involving entities and activities outsides the regular banking system". 
• The two shadow banking activities that are most important economically and in terms of financial stability at present are securitization and collateral intermediation.
• While measures of shadow banking differ considerably, the system is large, comparable in size to traditional banking, and continuing to grow.