EconPapers    
Economics at your fingertips  
 

What drives the shadow banking system in the short and long run?

John Duca

No 1401, Working Papers from Federal Reserve Bank of Dallas

Abstract: This paper analyzes how risk and other factors altered the relative use of short-term business debt funded by the shadow banking system since the early 1960s. Results indicate that the share was affected over the long-run not only by changing information and reserve requirement costs, but also by shifts in the impact of regulations on bank versus nonbank credit sources—such as Basel I in 1990 and reregulation in 2010. In the short-run, the shadow share rose when deposit interest rate ceilings were binding, the economic outlook improved, or risk premia declined, and fell when event risks disrupted financial markets.

Keywords: shadow banking; regulation; financial frictions; credit rationing (search for similar items in EconPapers)
JEL-codes: E44 E50 N12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-mac and nep-sog
Date: 2014-02-13
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://www.dallasfed.org/assets/documents/research/papers/2014/wp1401.pdf Full text (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:fip:feddwp:1401

Ordering information: This working paper can be ordered from

DOI: 10.24149/wp1401

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Dallas Contact information at EDIRC.
Bibliographic data for series maintained by Amy Chapman ().

 
Page updated 2019-10-11
Handle: RePEc:fip:feddwp:1401