Normal Banks Are Helping Shadow Banks Grow a Lot
A new report shows that U.S. bank loans to nondepository financial companies have jumped more than 230 percent over the past three years
Shadow banking is growing.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
It's no secret that financial companies without government-backed deposits—often dubbed shadow banks—have been growing as a result of post-financial crisis regulations imposed on actual banks.
But what's often overlooked is just how much the "normal" kind of banks are helping to power that growth.