Educational Endowments and the Financial Crisis: Social Costs and Systemic Risks in the Shadow Banking System (A Study of Six New England Schools)

2010 ◽  
Author(s):  
Joshua Humphreys
Keyword(s):  
Financial Crisis ◽  
New England ◽  
Banking System ◽  
Social Costs ◽  
Shadow Banking ◽  
System A ◽  
Systemic Risks ◽  
Shadow Banking System

scholarly journals Shadow Banking in India: Nature, Trends, Concerns and Policy Interventions

2019 ◽  
Vol 12 (2) ◽  
pp. 29-46
Author(s):  
Sashi Sivramkrishna ◽  
Soyra Gune ◽  
Kasturi Kandalam ◽  
Advait Moharir
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Shadow Banking ◽  
Secondary Sources ◽  
Shadow Banks ◽  
Massive Growth ◽  
Policy Interventions ◽  
Systemic Risks ◽  
Credit Cycle ◽  
Shadow Banking System

AbstractWhile the origin of shadow banks may be traced to the 1970s, developing countries have witnessed a massive growth of shadow banks in more recent decades. India too has seen a similar growth in shadow banks; however, the recent 2018 collapse of IL&FS Group, a major shadow bank, disrupted the credit cycle, stalled investment and even affected overall GDP growth. With experts warning that shadow banks are susceptible to systemic risks and crisis, it becomes imperative to understand the shadow banking system better. In this paper, we use exploratory data analysis – both quantitative and qualitative – to draw attention to the need for definitional clarity in the concept of shadow banks and how they operate. Trends in Indian shadow banking are discussed using data drawn from secondary sources. Systemic risks in India’s shadow banking sector are identified and policy interventions are discussed. The study is imperative for highlighting the importance of shadow banking in India, its growth and the evolving policy interventions regulating this important component of the financial system.

scholarly journals “High Quality Securitisation and EU Capital Markets Union – Is it Possible?”

2016 ◽  
Vol 7 (3) ◽  
Author(s):  
Vincenzo Bavoso
Keyword(s):  
Capital Markets ◽  
Banking System ◽  
Shadow Banking ◽  
Systemic Risks ◽  
Capital Markets Union ◽  
Current Design ◽  
Policy Objectives ◽  
Shadow Banking System ◽  
Eu Project ◽  
Public Consultations

AbstractThe resurrection of the securitisation market lies at the heart of the recent EU project to build a pan-European capital markets union (CMU). This is in line with the existing policy goal to expand market-based, disintermediated financing channels, which has been ongoing since the 1980s. Initial efforts to restart the moribund securitisation market in Europe have been carried out through a number of public consultations which have more recently converged towards the Commission’s proposal for a Regulation laying down the rules to create a European framework for Simple, Transparent and Standardised (STS) securitisation. This article provides a critical perspective on the EU project to create a capital market union and in particular on the proposed framework for STS securitisation. The critique is firstly centred on the problematic coordination of the different policy objectives, which emerged from the consultations’ responses. Secondly, it points to four specific areas of concern, namely, the difficulty to define securitisation for the purpose of the regulation, the dangers of linkages with the shadow banking system, the unresolved reliance on external ratings, and the question of STS supervision. It is argued in this article that the persistence of these problems in the current design leads to questioning whether a revived securitisation market would still fuel the shadow banking system and create systemic risks. It is pointed out that the difficulty to regulate complex legal relationships typical of long intermediation chains – such as tranched securitisation – makes the proposed framework still weak. This article submits that only a tighter approach to transaction standardisation could ensure the simplicity and transparency that the Commission is hoping to achieve. Equally, a supervisory infrastructure centred on the overseeing power of a pan-European authority is needed to prevent pre-crisis legal problems from recurring.

Systemic Risk in the Chinese Shadow Banking System: A Sector-Level Perspective

2015 ◽  
Vol 52 (2) ◽  
pp. 475-486 ◽  
Author(s):  
Guangning Tian ◽  
Jianjun Li ◽  
Ying Xue ◽  
Sara Hsu
Keyword(s):  
Systemic Risk ◽  
Banking System ◽  
Shadow Banking ◽  
System A ◽  
Shadow Banking System

scholarly journals A Simple Fix for a Complex Problem? Comments on Morgan Ricks, The Money Problem: Rethinking Financial Regulation

2017 ◽  
Vol 8 (2) ◽  
Author(s):  
Margaret M. Blair
Keyword(s):  
Financial Crisis ◽  
Financial Crises ◽  
Financial Regulation ◽  
Banking System ◽  
Complex Problem ◽  
Shadow Banking ◽  
Reform Legislation ◽  
Policy Analysts ◽  
Shadow Banking System ◽  
The U.S

Abstract The financial crisis of 2007–2009 left scholars and policy analysts scrambling to explain what went wrong. While a variety of stories have been told, none have seemed like they could account for the magnitude of the collapse in securities values, or the devastation the collapse caused to the performance of whole economies around the globe, nor could they offer a clear path to reform. Legislation passed to reform the financial system in the U.S. is extraordinarily complex, and still very controversial. Now, however, Morgan Ricks’ new book, The Money Problem: Rethinking Financial Regulation, cuts through the complexity to offer a relatively simple but compelling explanation – the crisis was a consequence of an old-fashioned run on the “bank”, which, in this case, was the shadow banking system rather than regular banks. The solution is the same as the solution that prevented major financial crises in the U.S. from the 1930s to 2007 – government insurance of “money claims” and stricter regulation of firms that are allowed to issue money-like claims.

Alcune considerazioni sullo Shadow Banking System

2012 ◽  
pp. 69-87
Author(s):  
Figuera Stefano
Keyword(s):  
Financial Crisis ◽  
Systemic Risk ◽  
Financial Intermediation ◽  
Banking System ◽  
Shadow Banking ◽  
Production Theory ◽  
Recent Period ◽  
Capitalist Economy ◽  
Efficient Control ◽  
Shadow Banking System

The financial intermediation system has been characterized by the emergence of new subjects and instruments modifying its organization. The development of the shadow banking system parallel to the traditional one has led to the demand, during the recent period of financial crisis, for a more efficient control to weather the growing systemic risk. This changing context leads the Author to consider some essential profiles of the monetary nature of the capitalist economy. Specifically, a need is perceived to reinterpret recent events in the light of the credit nature of money and the endogenous character of its supply, aspects on which scholars of the Keynesian school have long focused their attention. The Author considers particularly useful the indications deriving from the monetary production theory, especially with reference to the distinction among the various forms of financing, to understand such changes and adopt suitable strategies to handle them.

Non-banking financial intermediation and phenomena of shadow money in modern economy

2021 ◽  
Vol 27 (8) ◽  
pp. 1694-1709
Author(s):  
Vladimir K. BURLACHKOV
Keyword(s):  
Commercial Banks ◽  
Financial Intermediation ◽  
Banking System ◽  
Banking Regulation ◽  
Developed Countries ◽  
Bank Credit ◽  
Shadow Banking ◽  
Economic Agents ◽  
Shadow Banking System ◽  
Lending Activity

Subject. The article addresses the non-banking financial intermediation (shadow banking system) as it is successfully expanding nowadays both in developed countries and emerging economics. Objectives. The study aims at conducting a comprehensive analysis of the specifics of non-banking financial intermediation, revealing its impact on economic agents’ activities, causes and consequences, and elaborating the methodological framework for effectiveness of modern monetary policy. Methods. I employ methods of scientific abstraction, induction, deduction, synthesis, and comparative analysis. Results. In the modern national economy, along with the money, created by the central bank and commercial banks, there are highly liquid financial instruments called shadow money. The scope of its application is shadow banking (financial intermediation) outside the banking system. The use of shadow money is caused by high demand for credit resources. Conclusions. The high activity of shadow banking and increased turnover of shadow money resulted from a transfer to Basel standards of banking regulation in the 1990s, which affected the lending activity of commercial banks. Under these conditions, the demand for loans provided by non-bank credit and financial institutions increased. The market of non-bank credit products was formed. However, the process of lending in the shadow banking is associated with high risks and non-stability of shadow money, widely used in this sphere.

Exploring the Dynamic Relationship in the Shadow Banking System

2016 ◽  
Author(s):  
Majid Haghani Rizi ◽  
Narayan K. Kishor ◽  
Hardik Marfatia
Keyword(s):  
Banking System ◽  
Shadow Banking ◽  
Dynamic Relationship ◽  
Shadow Banking System
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