SUAC Exchange Platform What is Shadow Banking?

Generally refers to those non-bank financial institutions that have some banking functions but are not regulated or less regulated. To put it simply, shadow banking is a financial institution that provides credit but is not a bank. China's shadow banking mainly includes trust companies, guarantee companies, pawn shops, money markets**, various types of private equity**, microfinance companies, and off-balance sheet businesses such as wealth management of various financial institutions.

Characteristics: There are many institutions, small scale, low level of leverage but rapid development.

"Shadow banking" is a system that refers to lending platforms that are off the bank's balance sheet, such as entrusted loans, trusts, microfinance, and even pawn shops, as well as "gray" private lending and even usury.

According to the Financial Stability Board, shadow banking refers to a credit intermediation system (including a variety of related institutions and business activities) that is outside the banking regulatory system and may give rise to systemic risk and regulatory arbitrage.

In China's market reality, shadow banking mainly covers two parts: one is the wealth management products sold by commercial banks in full swing, and the quasi-credit products sold by various non-bank financial institutions, such as trust products sold by trust companies, and the other is the private financial system represented by private usury.

"Shadow banking" is an important financial concept that emerged after the subprime mortgage crisis in the United States. It is a way of unlimited credit expansion through bank loans.

In China, the concept of "shadow banking" has not been clearly defined. As long as it involves lending relationships and off-balance sheet business of banks, it belongs to shadow banking.

Investment banks are one of the most heavyweight members of shadow banking, and people often refer to Wall Street as investment banks.

Since the shadow liabilities are not deposits, they are mainly in the form of financial assets, and the initial purpose is to diversify risks, so they are not subject to strict supervision of deposit monetary institutions, and there is arbitrage control.

Shadow banking itself, with major players such as investment banking, hedging**, private equity**, SIV and money markets**.

The shadow banking transaction model is in the form of wholesale, which is different from the retail model of commercial banks.

The growth of "shadow banking" has forced traditional banks to become more efficient. The competition is multifaceted and increasingly intense. It has also supported the employment of hundreds of millions of people.

To put it simply, BAI finance is capital du

of accommodating. Finance is a general term for the circulation and credit activities of money and the economic activities associated with the DAO.

Finance refers to all economic activities related to the issuance, custody, exchange, settlement and financing of credit currency, even including the trading of gold and silver, and finance in a narrow sense refers to the financing of credit currency.

There are five elements of finance:

1. Financial object: currency (capital). The circulation of money regulated by the monetary system is of the nature of advance, turnover and value-added.

2. Financial methods: represented by credit methods based on lending. The objects of transactions in the financial market are generally written proof of credit relationship, contractual documents of creditor's rights and debts, etc.

Including direct financing: no intermediaries involved; Indirect financing: finance through the intermediary role of intermediary structures.

3. Financial institutions: usually divided into banks and non-bank financial institutions.

4. Financial venues: financial markets, including capital markets, currency markets, foreign exchange markets, insurance markets, derivative financial instrument markets, and so on.

5. System and regulation mechanism: supervise and regulate financial activities.

In this way, you know the relationship between finance and banks, banks can only be regarded as one of the five elements of finance, financial institutions, but financial institutions are not equal to banks, banks are only a small part of financial institutions.

Hello! If it is a simple financial bank, it refers to all banks in China, if it is a financial institution, China's financial institutions can be divided into four categories according to their status and function: The first category, ** bank, that is, the People's Bank of China.

The second category is banks. Including policy banks, commercial banks, and village and township banks. The third category is non-bank financial institutions.

It mainly includes state-owned and joint-stock insurance companies, urban credit cooperatives, ** companies (investment banks), finance companies, general investment consulting companies, etc. The fourth category is foreign-funded, overseas Chinese-funded and Sino-foreign joint venture financial institutions established in China. Online application means online application.

A financial investment company is an investment company that makes equity investment in financial enterprises, exercises the rights of investors and fulfills the obligations of investors in financial enterprises in accordance with the law to achieve the preservation and appreciation of financial assets, and can also be understood as a kind of financial intermediary, which concentrates the funds of individual investors and invests in many ** or other assets.

That is, a professional bank that handles personal financial business for every citizen.

Personal financial business is a general term for banks and other financial products and financial services provided by residents or families. Including the sales statistics of the first banking business such as insurance, bank cards, deposit business, consumer loans, credit card business, wealth management (wealth management) domestic custom called personal investment and financial analysis and other businesses.

Such as: personal deposit savings, personal housing mortgage loans, personal comprehensive consumer loans, personal business loans, personal financial management business, credit card installment payment to buy cars, furniture, electrical appliances, etc.

1. A bank is a financial institution established in accordance with the law to engage in monetary and credit business. Banks are the products of the development of the commodity-money economy to a certain stage, and banks are one of the financial institutions.

2. Financial institutions refer to financial intermediaries engaged in the financial services industry, which are part of the financial system, and the financial services industry (banking, insurance, trust, etc.) is related to this. Financial intermediaries also include banks, companies, insurance companies, trust and investment companies and management companies. At the same time, it also refers to the relevant lending institutions, which lend to companies whose customers have financial turnover, and their interest rates are relatively higher than those of banks, but it is more convenient for customers to borrow because there is no need for complicated documents to prove it.

Banking finance is only one part of finance.

One is a banking financial institution, and the other is a non-bank financial institution. Banking and non-bank financial institutions can be further classified. 1. Classification of banking and financial institutions Banking and financial institutions can be divided into three categories: ** banks, policy banks, and commercial banks.