# Shadow Banking

*Banking & Payments — Finicade finance glossary*

Shadow banking is credit intermediation outside the regulated banking system: money market funds, securitisation, repo, private credit funds.

Shadow banking is credit intermediation performed outside the regulated banking system — money market funds, securitisation vehicles, repo markets, private credit funds. It does what banks do without deposit insurance or capital rules, which makes it cheaper and more fragile. It was the epicentre of 2008, and its share of global credit has grown substantially since, which is precisely why regulators keep returning to it.

**Also known as:** non-bank financial intermediation, shadow banks

**Related terms:** [Securitization](https://finicade.com/glossary/securitization), [Repo (Repurchase Agreement)](https://finicade.com/glossary/repo), [Money Market Fund](https://finicade.com/glossary/money-market-fund), [Systemic Risk](https://finicade.com/glossary/systemic-risk), [Liquidity Risk](https://finicade.com/glossary/liquidity-risk)

Source: https://finicade.com/glossary/shadow-banking