Episode 437: The growth of shadow banking and why small businesses choose non-bank lenders

This episode examines two blog posts from PCBB titled “The rise & risks of shadow banking” and “Why small businesses choose non-bank lenders”. Shadow banking has grown through technological advancements, lack of regulation, increased demand for credit, and cost efficiency. Because of this, shadow banking poses several risks to traditional banking. Therefore, what are non-bank lenders in the shadow banking world doing right? They offer relationship premiums, flexible repayment schedules, fewer documentation requirements, and faster loan decisions. Links to both blog posts are included below.

Link: Why Small Businesses Choose Non-Bank Lenders

Link: The Rise & Risks of Shadow Banking