What is Shadow Banking?

Post date: Apr 8, 2013 1:13:19 PM

FSB (2011) defi nes the shadow banking system as credit intermediation involving entities and activities outside the regular banking system raises i) systemic risk concerns, in particular by maturity/liquidity transformation, leverage and flawed credit risk transfer, and/or ii) regulatory arbitrage concerns.

There is a great survey on shadow banking by Pozsar, Adrian, Ashcraft, and Boesky (2012).