On May 26, the UK Financial Conduct Authority (FCA) published an occasional paper (Paper) on “market-based finance” (MBF). The Paper, written by staff in the FCA’s Chief Economist’s Department, expands on the general concept of shadow banking (credit intermediation carried out by non-banks) and focuses on the FCA’s concept of MBF—which it notes is set apart from the traditional model of banking because, in MBF, aspects of credit intermediation are carried out and priced on global markets for money and risk.  
Continue Reading FCA Occasional Paper on “Market-Based Finance” (a.k.a., Shadow Banking)