Shadow banking products

There are evidences that shadow banking activities have been increasing at high rates in both developed and developing countries. These activities may include certain sectors and activities of banks and financial institutions that may be considered as shadow; and the concepts and interpretations of shadow banking may vary in the context of developed and developing countries. One reason might be that financial market is more mature in the developed countries, and for them it is more of a risk transformation through securitisation; in the context of developing and underdeveloped countries, financial market is yet to attain the expected maturity stage and many segments are still underdeveloped in nature, and for them shadow banking activities are more supplementary to formal banking activities. Some instruments of mobile financial services like bKash, Nagad, Upay are shadow products as they are controlled or operated by separate managements outside of banks. bKash is a separate company. Similarly, agent banking is another example of shadow banking in Bangladesh as one part of the transaction is operated by people who are not banking people. Some vendors or local people operate it. Capital market-related activities like services by the brokerage houses, merchant banks, and alternative investment funds are shadow- banking activities throughout the globe, the banking academics at the BIBM say in the research report-evidently in the wake of mind-boggling financial scams in the country and also across the globe that prompted some major countries to press the brake on upstart fintech operators.