Go Ad-Free
    My Alerts
    Moneycontrol
    Moneycontrol PRO
    HomeNewsOpinionSystemic credit event in US shadow banks the biggest tail risk for markets

    Systemic credit event in US shadow banks the biggest tail risk for markets

    As the markets wait for the Fed announcement, the message from the latest Bank of America survey of global fund managers is that while inflation is likely to come down and growth will slow, the biggest tail risk is of a credit event in US shadow banks and also of inflation remaining high 

    Manas Chakravarty
    March 22, 2023 / 08:16 IST
    Banks fail as they lend long term whereas their deposits are short term. They cannot call back their long-term loans easily, whereas their short-term deposits have to be paid on demand.
    • PRO Panorama

      Moneycontrol Pro Panorama | GST reset fuels auto engine

      Dec 2, 2025 / 03:01 PM IST

      Moneycontrol Pro Panorama December 2 edition: RBI's liquidity measures clearer than rate cuts, revised tax regime could impact ITC...

      Read Now
    Unlock This Article

    Are you a PRO subscriber? Sign In

    What Do You Get

    • Ad free Experience

      Seamless navigation, faster responses.

    • Expert Perspective

      Explore 230+ exclusive editorials every month

    • +

      Uncover Insights from World-Renowned Experts and Journalists

    • Actionable Insights

      40+ weekly investment ideas + 3 to 4 daily technical calls

    • Virtual Events

      Exclusive Live Webinars for Expert Trading & Investment Strategies!

    • Newsletters

      Stay ahead with daily and weekly insights

    View Offers

    Unlock exclusive discounts