Fortune Apr- 5, 2023
shadow banks

The IMF warns that shadow banks that hold nearly 50% of global assets are vulnerable as central banks raise rates to tackle inflation

In 1930, coming off the back of a plague of bank runs that plunged the country into the Great Depression, the voice of a then-unknown Orson Welles gripped American audiences: “Who knows what evil lurks in the hearts of men? The Shadow knows…” Nearly 100 years later, history is rhyming amid the second- and third-largest bank failures in U.S. history, as International Monetary Fund researchers warn of the evils that still lurk in the shadows. The shadow banking system, that is.

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