What Is Shadow Banking?
Credit intermediation just means connecting savers with borrowers; today the FSB prefers the term nonbank financial intermediation.
Video coming soon. The lesson video will appear here once it is published on YouTube.
Check yourself: sample questions
Think about each question, pick what you would answer if you like, then select “Show answer” to see the solution and why. Nothing is graded or sent to us. Example numbers are worked examples, not predictions.
1.What is shadow banking, per the Financial Stability Board?
Credit intermediation just means connecting savers with borrowers; today the FSB prefers the term nonbank financial intermediation.
2.What share of global financial assets did nonbank firms hold in 2024?
It grew 9.4 percent in 2024, about twice as fast as banks; the narrower measure rose 12 percent to 76.3 trillion dollars (FSB).
3.Does deposit insurance cover shares in a money market fund?
Fund shares are not deposits, so losses can reach the saver (FDIC).
Full course: 5 more questions for this lesson
The full course unlocks all self-check questions of all 365 lessons, the daily plan, your progress and the printable learning record. Lessons 1 to 7 are completely free.
See the full course Start the free week
Already bought? Open the course on this device
Sources (6)
- Shadow Banking: Scoping the Issues (Financial Stability Board, 12. April 2011)
- FSB reports continued growth in nonbank financial intermediation in 2024 to $256.8 trillion (Financial Stability Board, 16. December 2025)
- Global Shadow Banking Monitoring Report 2017 (Financial Stability Board, 5. March 2018)
- Money Market Mutual Funds (Federal Reserve History)
- Understanding Deposit Insurance (Federal Deposit Insurance Corporation)
- Eigene Rechnung: zwei Wege, derselbe Kredit (Leo
Education only. Not financial advice.