Dana El-Kurd
👤 SpeakerAppearances Over Time
Podcast Appearances
I'm going to walk you through it.
So I'm going to quote the IMF's definition of non-bank financial intermediation.
Quote, all entities outside the regulated banking system that perform the core banking functions credit intermediation.
That is, taking money from savers and lending it to borrowers.
The four key aspects of intermediation are maturity transformation.
This is what the bank does.
The loan gets older.
And then it gets paid back over time.
Yeah, well, you turn your short-term thing into a long-term investment, or you do the opposite.
Opposite's not good.
They're both kind of a disaster, but like, yeah, yeah, the opposite is kind of how we got into this mess.
There's liquidity transformation, which we know this too.
It's turning money into a thing that's not money.
Yeah, or turning not money into a thing you can buy a burger with.
We got this leverage.