ScienceGuy

Shadow banking system fascinated me, especially post-2008 crisis when I realised their importance in the system. NBFCs are not allowed by the central banks, to operate in the same way as the regular banks, e.g., while banks are allowed to accept deposits (like savings accounts), NBFCs are not allowed to do so.

Click here   to read the summarized Richard Werner's paper titled " H ow do banks create money, and why other firms cannot do the same? An explanation for coexistence of lending and deposit taking ".