Saturday , May 10 2025
Home / Mike Norman Economics / The $52 Trillion Shadow Banks That Supercharged The Commodity Boom — Alex Kimani

The $52 Trillion Shadow Banks That Supercharged The Commodity Boom — Alex Kimani

Summary:
With a dearth in lending, trade finance is becoming an increasingly important alternative credit investment strategy where a growing variety of shadow banks and investment funds are becoming "the new banks". Shadow banks–a term the industry generally resents–consists of financial intermediaries who facilitate the creation of credit across the global financial system. The shadow banking system can also refer to unregulated activities by regulated institutions, including hedge funds, unlisted derivatives, and even credit default swaps. One big distinction between shadow banks vs. traditional lenders: Shadow bankers are mostly exempt from regulatory oversight because these institutions do not accept traditional deposits. Naturally, they also charge much higher rates than traditional

Topics:
Mike Norman considers the following as important:

This could be interesting, too:

Robert Vienneau writes Austrian Capital Theory And Triple-Switching In The Corn-Tractor Model

Mike Norman writes The Accursed Tariffs — NeilW

Mike Norman writes IRS has agreed to share migrants’ tax information with ICE

Mike Norman writes Trump’s “Liberation Day”: Another PR Gag, or Global Reorientation Turning Point? — Simplicius

With a dearth in lending, trade finance is becoming an increasingly important alternative credit investment strategy where a growing variety of shadow banks and investment funds are becoming "the new banks".

Shadow banks–a term the industry generally resents–consists of financial intermediaries who facilitate the creation of credit across the global financial system. The shadow banking system can also refer to unregulated activities by regulated institutions, including hedge funds, unlisted derivatives, and even credit default swaps. One big distinction between shadow banks vs. traditional lenders: Shadow bankers are mostly exempt from regulatory oversight because these institutions do not accept traditional deposits. Naturally, they also charge much higher rates than traditional lenders–sometimes twice as high.

These companies have been seeing a surge in business during the ongoing commodity boom as banks turn their backs on smaller and higher-risk traders....

Oilprice
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

Leave a Reply

Your email address will not be published. Required fields are marked *