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Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.

 

Term of the day

shadow banking

The system of non-deposit taking financial intermediaries including investment banks, hedge funds, monoline insurance firms and other securities operators.

These non traditional entities grew up complementing the traditional banking system during the property boom between 2001 and 2008, particularly in the US. All operated in different parts of the securitisation business where mortgage loans were packaged as securities, moved off bank balance sheets and distributed, via various investment...