 shadow banking: a review of the literatureTobias Adrian and Adam Ashcraft () from Palgrave Macmillan Abstract: We provide an overview of the rapidly evolving literature on shadow credit intermediation. The shadow banking system consists of a web of specialised financial institutions that conduct credit, maturity, and liquidity transformation without direct, explicit access to public backstops. The lack of such access to sources of government liquidity and credit backstops makes shadow banks inherently fragile. Much of shadow banking activities is intertwined with the operations of core regulated institutions such as bank holding companies and insurance companies, thus creating a source of systemic risk for the financial system at large. We review fundamental reasons for the existence of shadow banking, explain the functioning of shadow banking institutions and activities, discuss why shadow banks need to be regulated, and review the impact of recent reform efforts on shadow banking credit intermediation. Keywords: shadow banking; financial stability; financial intermediation; securitization; narrow banking; implicit guarantee; asset-backed commercial paper; tri-party repo; government-sponsored enterprise; credit derivatives; financial guarantees; money market mutual funds (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:dofeco:v:6:year:2012:doi:3890 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in The New Palgrave Dictionary of Economics from Palgrave Macmillan |
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