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Discover Ludwig'shadow banking' is a correct and usable term in written English.
You would use it to refer to the system of banks and other financial institutions outside the regular banking system. For example, "The term 'shadow banking' refers to the system of banks and other financial institutions outside the regular banking system."
Dictionary
shadow banking
noun
Bank-like activities that are not subject to existing bank regulation.
Exact(60)
Shadow banking isn't going away.
SHADOW banking contributed to the financial crisis.
We call it the shadow banking system".
"There were no complex derivatives or shadow banking systems.
The shadow banking system went haywire during the housing boom.
To be fair, it's difficult even to regulate shadow banking.
He chose shadow banking in the emerging markets.
THE DEFINITION OF shadow banking is itself shadowy.
Shadow banking (20) The risk to banks from hedge funds and other "shadow banking institutions, for example as competition or sources of volatility 17.
He said Australia dealt with a "shadow banking" problem by moving to a more liberalized system.
It established a new lending apparatus, via the capital markets: the so-called "shadow" banking system.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com