# Parallel banking (so often also mostly in German, more rarely bank equivalent sector)

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- Post ID: 591055
- Modified: 2023-07-25T21:13:46+00:00
- Language: en

## Definition

Legally established and properly constituted companies, - which are not banks, - but nevertheless engage in financial business by - raising primarily short-term funds and - lending these - on a long-term basis - i.e. engaging in maturity transformation - or channeling them into companies threatened by insolvency. Such companies include hedge funds and structured investment vehicles. These companies have not yet been monitored by supervisory authorities. - Underground banking, namely a web of financial services integrated into legitimate global financial flows that is not permitted by law or regulation. The risk of loss in this parallel market is very high. - See banking regulatory paradox, daimonion, domicile concealment, financial investor, frontrunning, secret tip, money laundering, ghetto banking, money transfer intermediaries, money laundering, foundation fraud, capital market, gray, obrist's fee, yield chasing, peer-to-peer lending, avenging angels, registry money, remittance services, shadow banking, underground banking, angle brokers. - Cf. Financial Stability Report 2012, pp. 67 et seq. (detailed account of the area), Deutsche Bundesbank Monthly Report of March 2014, pp. 15 et seq. (detailed account; overviews; references). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

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