What does shadow banking mean? What is the difference between it and a real bank?

It is generally believed in the industry that institutions that exercise the functions of commercial banks and are not strictly regulated are "shadow banks". At present, the domestic "shadow banking" mainly explains a function of evading supervision. Unregulated, the flow of funds is hidden, and it is a "shadow bank". For the regulated banks, the bank-trust wealth management products that are not included in the credit business are also "shadow banks". At present, there are three main forms of "shadow banking": bank wealth management products, loan products from non-bank financial institutions and private lending. I read many reports in Tianhou that the risks of shadow banking in China have increased. Learn more and avoid losses.