<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The evolution of shadow banking sector in terms of structure (concentration of institutions), expanded connections with banks, and in terms of activities there was an increase of the systemic relevance of these entities. The aim of this paper is to review the relevant literature on the topic and the progress that has been made regarding the implementation of macro-prudential policies since the global financial crisis of 2008. As the financial crisis highlighted, shadow banking sector should be considered a source of systemic risk and it is essential to identify its potential effects to the financial sector downturn. We examine the empirical studies that have been carried out in the recent literature on the structure and effects of nonbank financial sector regulation. Based on our findings, the main results pointed out that the academic research conducted in this field focused on the link between shadow banking and systemic risk. The collapse of one financial institution has the potential to have widespread effects and could trigger a series of failures that directly threatens the stability of the whole financial system.</p>
</abstract>

The evolution of shadow banking sector in terms of structure (concentration of institutions), expanded connections with banks, and in terms of activities there was an increase of the systemic relevance of these entities. The aim of this paper is to review the relevant literature on the topic and the progress that has been made regarding the implementation of macro-prudential policies since the global financial crisis of 2008. As the financial crisis highlighted, shadow banking sector should be considered a source of systemic risk and it is essential to identify its potential effects to the financial sector downturn. We examine the empirical studies that have been carried out in the recent literature on the structure and effects of nonbank financial sector regulation. Based on our findings, the main results pointed out that the academic research conducted in this field focused on the link between shadow banking and systemic risk. The collapse of one financial institution has the potential to have widespread effects and could trigger a series of failures that directly threatens the stability of the whole financial system.

A Review on the Impact of Shadow Banking on Financial Markets Prudential Regulation

Proceedings of the International Conference on Business Excellence

This work is licensed under the Creative Commons Attribution 4.0 International License.

The evolution of shadow banking sector in terms of structure (concentration of institutions), expanded connections with banks, and in terms of activities there...

A Review on the Impact of Shadow Banking on Financial Markets Prudential Regulation

Data publikacji: 14 lip 2023

Zakres stron: 1596 - 1602

DOI: https://doi.org/10.2478/picbe-2023-0143

Słowa kluczowe
shadow banking, financial regulation, systemic risk, financial stability

© 2023 Andreea-Elena Croicu et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

A Review on the Impact of Shadow Banking on Financial Markets Prudential Regulation

Data publikacji: 14 lip 2023

Zakres stron: 1596 - 1602

DOI: https://doi.org/10.2478/picbe-2023-0143

Słowa kluczoweshadow banking, financial regulation, systemic risk, financial stability

© 2023 Andreea-Elena Croicu et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Słowa kluczowe
shadow banking, financial regulation, systemic risk, financial stability