# shadow banking system

> English word · Noun

## Definitions
1. Non-bank financial institutions, that, like banks, borrow short and in liquid forms and lend or invest long in more illiquid assets.

## Etymology
Coined by Paul McCulley in 2007. Parallel with earlier constructions such as shadow cabinet and shadow government as names for quasi-institutions running unofficially in parallel with the official institutions.

## Source
Compiled from Wiktionary via kaikki.org (CC BY-SA). Data vintage: 2026-05-06.
Canonical page: https://plainspell.com/en/word/shadow-banking-system