The Shadow Banking: Definition, Regulation and Evolution. An International Analysis

Authors

  • Francisco José Climent Diranzo Departamento de Economía Financiera y Actuarial (Universidad de Valencia)
  • María Doménech Sarría Licenciada en Administración y Dirección de Empresas por la Universitat de València Máster en Ciencias Actuariales y Financieras en la Universitat de València

DOI:

https://doi.org/10.32826/cude.v42i116.83

Keywords:

Shadow Banking, Regulation, Financial Stability Board, Non-Parametric Test

Abstract

The System of Shadow Banking encompasses credit intermediation activities that are not regulated, that contain systemic risks and have more attractive characteristics than those offered by traditional banking. However, due to the participation of the banking system in this type of activities, facilitated by the lack of prudential regulation, it has been shown that in stress risks situations of the Shadow Banking have been transferred to the regulated system. The objective of this work is the study of the phenomenon of Shadow Banking in conceptual terms, what activities are included, the analysis of its size and how it has evolved. Also, the problems associated with this type of activity are analyzed and what regulatory expectations are projected. In addition, a statistical analysis is carried out through non-parametric tests, based on data from Shadow Banking in 26 countries registered by the Financial Stability Board for 2010-2014. The results allow to conclude that the countries can be grouped in six groups and that there are three groups in which the countries that compose them have equal distributions.

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Published

2018-04-11

Issue

Vol. 41 No. 116 (2018): Pages 151-224 (May-Agust 2018)

Section

Articles

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