India, Feb. 7 -- Over the past decade, global finance has moved outside traditional banks. This shift is often described as the rise of shadow banking, a loose term for credit and financial activity carried out by non-bank entities that perform bank-like functions but sit outside the core regulatory perimeter. What was once seen as a peripheral feature of the financial system has now become central to how modern capitalism allocates risk and capital. This expansion is unfolding at a time of buoyant markets, lighter oversight and incentive structures that prioritise short-term gains, raising uncomfortable questions about whether the financial system is once again building vulnerabilities in plain sight.

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