RSPH Blogs - Finances!

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  What Are Shadow Banks? Shadow Banks are basically such financial bodies that performs bank like activities but aren't really official/commercial Banks. As, unlike Commercial Banks they tend to avoid large & time consuming procedures for making transactions. Some examples Of Shadow Banks....: Investment Banks, Mutual Funds, Insurance Companies, etc.! Here's how it really works.... How Do Shadow Banks Works? How Are Shadow Banks Different From Commercial Banks? (Examples!) Shadow Banks tends to collect money; for example like---- Mutual Funds, Insurance Companies, etc. ....& tends to Invest it somewhere instead of giving out loans as Commercial banks do....  & you know Commercial Banks actually have a leading role as they can usualy sell the property in case of a default. Don't they? Yes, they do! But Shadow Banks &/OR Mutual Funds // Insurance Companies profit is completely dependent on those Financial Instruments they tend to Invest in! So, they are basica...

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