Moving beyond the shadow banking concept

Robert Ophèle and Jennifer D’hoir

Financial Stability Review, 2018, issue 22, 145-154

Abstract: A concept that emerged from the 2007-08 financial crisis, shadow banking has been a focus of regulatory attention for almost a decade. The need for a common definition has spawned a debate over terminology that mirrors the challenges involved in finding a catch-all term to cover such a wide spectrum of situations. If some commentators today prefer expressions such as “market-based finance” or “non-bank finance” that avoid the original term’s pejorative connotations, it is because there has been a paradigm shift since the crisis. After addressing most areas of “shadow banking”, from the transparency of repo and securities lending transactions to money market fund (MMF) reforms and securitisation rules, regulators are now turning to consider the effectiveness of regulation and are concentrating on identifying persistent areas of risk as well as emerging risks. Extending beyond the narrow definition of shadow banking, recent efforts to make the financial system more robust, as illustrated by the analysis of vulnerabilities in the asset management sector, highlight the need for a holistic risk-based approach that considers different sectors and areas of activity as a whole. How does this risk based approach play out in practice? And what are the main related challenges?

Date: 2018
References: Add references at CitEc
Citations:

Downloads: (external link)
https://publications.banque-france.fr/sites/defaul ... bility_review_22.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bfr:fisrev:2018:22:13

Access Statistics for this article

More articles in Financial Stability Review from Banque de France Banque de France 31 Rue Croix des Petits Champs LABOLOG - 49-1404 75049 PARIS. Contact information at EDIRC.
Bibliographic data for series maintained by Michael brassart ().