Shade shadow in the Repurchase Agreement

Aug 6th, 2022
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Employees from different departments shadow each others roles, giving them a broader understanding of the organizations operations. Participants will appreciate the interconnectedness of various functions within the organization.
Shadow banking is sometimes said to include entities such as hedge funds, money market funds, structured investment vehicles (SIV), credit investment funds, exchange-traded funds, credit hedge funds, private equity funds, securities broker-dealers, credit insurance providers, securitization and finance companies.
Answer and Explanation: The correct answer is D. Credit unions. The other options are part of the shadow banking system because they are not depository institutions like the traditional banking system.
Shadow banking is generally unregulated and not subject to the same kinds of risk, liquidity, and capital restrictions as traditional banks are. The shadow banking system played a major role in the expansion of housing credit in the run-up to the 2008 financial crisis.
Repo is not inherently a shadow banking tool. It has been widely used by traditional banks in Europe for many years and has helped many of these to ride out the crisis by giving them continued access to a source of term funding when unsecured term markets have been closed to them.
Shadow banking is a term used to describe bank-like activities (mainly lending) that take place outside the traditional banking sector. It is now commonly referred to internationally as non-bank financial intermediation or market-based finance. Shadow bank lending has a similar function to traditional bank lending.
These include: Investment banks, like Goldman Sachs or Morgan Stanley. Mortgage lenders. Money market funds. Insurance/re-insurance companies.

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