Institutions in fringe banking areas (e.g. investment banks) are not subject to the same capital controls as banks and, in many cases, adopted a very high leverage.

Name: Institutions in fringe banking areas (e.g. investment banks) are not subject to the same capital controls as banks and, in many cases, adopted a very high leverage.
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Question

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Fringe banking institutions like investment banks often operate under different regulatory frameworks compared to traditional banks, allowing them to use higher leverage.

Institutions in Fringe Banking Areas (E