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EDUCATION SERIES : SHADOW BANKING PART 1

As we all know, traditional banks are subject to its maturity transformation function—as banks borrow short-term funds to longer term loans, and qualitative asset transformation function—as banks store a small fraction of their deposits in liquid assets and lend out the rest for loans (illiquid assets). However, another institution which works nearly like traditional banks shows up! How do they develop? Read more to find out!

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Shadow Banking Part 1


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