What happens when they get Greedy Money lenders

The shadow banking system (or non-bank financial system) played a critical role in the recent financial crisis. Shadow banks are financial entities that borrow short-term and lend long-term, but unlike traditional banks they are outside the purview of traditional banking regulation and do not have access to a lender of last resort or federal deposit insurance. The shadow banking system grew considerably in the lead up to the 2008 Financial Crisis due to its competitive advantages over the traditional banking system. The shock resulting from the burst of the housing bubble and subprime crisis, created a run on the shadow banking system without the traditional safety nets in place that protect the traditional banking system. This helped fuel a credit crunch and motivated an emergency response by the government to stem this panic.

Shadow banking defined

Shadow banks (or non-banks) are financial entities that borrow short-term and lend long-term, but are not under traditional banking regulation and do not have access to a lender of last resort or federal deposit insurance. Shadow banks include money market mutual funds, investment banks, asset-backed commercial paper (ABCP), and repurchase (repo) agreements

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Shadow banking always been around. They fill the gap that banks can’t. During the GFC, they have been the alternative method in moving funds when banks are scrutinizing most transactions. The authorities are clamping down on on them (such as Hawala) to further establish the money trail, especially the terrorists and criminals.

To say their days are numbered is not realistic. They will always be around. Just adapt and move on.