The Money View: Global Crisis, Global Reform

The video explores shadow banking as an evolution from traditional cross-border banking. It begins by explaining the pre-ordinary cross-border banking system, where global banks borrow from world markets and lend to local banking systems. The video discusses crises in this system and the mechanisms developed to handle them. It then introduces the shadow banking system, highlighting its similarities to traditional banking but emphasizing its operation in capital markets and dollar lending. The role of securities as collateral for dollar funding in shadow banking is also covered, concluding with the idea that shadow banking is a form of dollar cross-border banking.

What role do global banks play in ordinary cross border banking?

What are the sources of funds for cross border banking?

How can shadow banking be viewed in relation to cross border banking?

In what way does shadow banking differ from traditional banking?

What is the significance of residential mortgage backed securities in shadow banking?