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Half of the global financial system is made up of shadow banks. You have probably already used one. What are shadow banks and what to be wary of when using them. Topics covered include: What are the roles of shadow banks What are examples of shadow banks How two shadow banks, Greensill Capital and Archegos Capital Management, contributed to billions of dollars in losses How China's massive use of shadow banks differs from the rest of the world How individuals investors can benefit from the careful use of shadow banks. Thanks to Mint Mobile and Clear for sponsoring the episode. Use code David to get two months of Clear for free. For more information on this episode click here. Show Notes Q+A-What is shadow banking and why does it matter? by Michelle Martin—Reuters What You Need to Know About the Shadow Banking System Now by Craig Kirsner—Kiplinger Global Monitoring Report on Non-Bank Financial Intermediation 2020—Financial Stability Board How fintech will eat into banks’ business—The Economist Why is supply-chain finance, as practised by Greensill Capital, risky?—The Economist Tokio Marine defends governance over Greensill exposure by Leo Lewis, Kana Inagaki, and Ian Smith—Financial Times Related Episodes 304: A 15% Guaranteed Return? Lending on the Fringes of Finance 305: Are Banks Safe? 333: How The Covid Shock Nearly Destroyed The Financial System 339: How To Make Money with BlockFi, Dai and the Evolving DeFi Ecosystem