The soilless agriculture is a technique used to produce goods on a reconstituted and isolated place.
One may wonder whether such technique could be applied to corporate finance where specialists are striving to imagine “alternative” products to bank credit. Think about crowd funding, private placements of bonds …
The regulators themselves tend to support the movement not without ensuring the safety of public savings that are key for these alternative sources of funds.
One illutration of this is the Autorité de Contrôle Prudentiel that has set in France the conditions that allow insurance companies to grant unsecured loans to corporate entities : such insurance companies need to demonstrate their ability to select, diversify, manage, control their lending positions.
Isn’t such initiative a way to do banking business without banks ?
Unless one believes that the banking business is already some offshore business…
Beware…
Dominique F. Pasquier