Chasing the Shadows : How Significant is Shadow Banking in Emerging Markets?
Broadly defined as credit intermediation involving entities and activities outside the regular banking system, shadow banking raises important policy concerns. Given significant challenges with data availability, the size, nature and significance o...
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| Format: | Brief |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2012/09/16728825/chasing-shadows-significant-shadow-banking-emerging-markets http://hdl.handle.net/10986/17088 |
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okr-10986-17088 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO CREDIT ACCOUNTING ADVANCED COUNTRIES ADVANCED ECONOMIES ALTERNATIVE FUNDING ALTERNATIVE SOURCES OF FINANCING ARBITRAGE ASSET BACKED SECURITIES ASSET MANAGERS ASSET PRICES ASSET VALUES BALANCE SHEET BALANCE SHEETS BANK ACTIVITIES BANK BALANCE SHEETS BANK CREDIT BANK DEPOSITS BANK INTERMEDIATION BANK LENDING BANK LOANS BANK POLICY BANK RUN BANKING INSTITUTIONS BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKS BONDS BORROWER BORROWING BROKER BROKERAGE BROKERAGE FIRMS BROKERS BUSINESS CYCLE CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS COLLATERAL COMMERCIAL BANK COMMERCIAL BANK DEPOSITS COMMERCIAL BANKING COMMERCIAL BANKS COMMERCIAL LENDERS COMMERCIAL PAPERS CONTAGION CONVERTIBLE DEBT COOPERATIVE BANKS CREDIT AVAILABILITY CREDIT EXTENSION CREDIT INTERMEDIATION CREDIT MARKETS CREDIT NEEDS CREDIT PRODUCTS CREDIT RISK CREDIT RISK MANAGEMENT CREDIT RISKS CREDIT SPREADS CREDIT UNIONS CUSTODIAN BANKS DATA AVAILABILITY DEBT DEBT OBLIGATIONS DEFAULTS DEPOSIT DEPOSIT INSURANCE DEPOSITS DERIVATIVE DEVELOPING COUNTRIES DEVELOPING ECONOMIES DIVIDENDS ECONOMIC POLICY EMERGING MARKET EMERGING MARKETS END-BORROWERS EQUITY FUNDS EQUITY TRADING EXPOSURE EXPOSURES FACTORING FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF NEW YORK FINANCE COMPANIES FINANCIAL CRISIS FINANCIAL INSTABILITY FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL REFORM FINANCIAL RISKS FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR STABILITY FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEM STABILITY FINANCIAL SYSTEMS FOREIGN CURRENCY FORMAL BANKS FORMAL FINANCIAL SECTOR FUND INVESTMENTS FUND MANAGEMENT FUNDING SOURCES FUTURES GLOBAL ECONOMY GOVERNMENT BONDS HEDGE FUND HIDDEN RISKS HIGH INTEREST RATES HOLDINGS HOUSEHOLDS IMPLICIT SUPPORT INFRASTRUCTURE PROJECTS INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INSURED DEPOSITS INTEREST RATE INTEREST RATE CEILINGS INTEREST RATES INTERNATIONAL FINANCE ISSUANCE LAWS LENDER LENDERS LENDERS OF LAST RESORT LETTERS OF CREDIT LIQUIDITY LIQUIDITY RISKS LOAN ORIGINATION LOCAL BANKS MACROECONOMIC MANAGEMENT MARKET CONFIDENCE MARKET VALUE MATURITY MATURITY TRANSFORMATION MICROFINANCE MONETARY FUND MONETARY POLICY MONEY LENDERS MONEY MARKET MUTUAL FUNDS NEW PRODUCTS NONBANK FINANCIAL INSTITUTIONS NONBANKS NONPERFORMING LOANS OUTSTANDING LOANS PAWN PAWN SHOPS PENSION PENSION FUNDS PENSIONS PRIVATE LENDERS PRIVATE LENDING PRIVATE PENSION PRIVATE SECTOR DEVELOPMENT PRUDENTIAL REGULATIONS PUBLIC PENSION RAPID GROWTH REAL ESTATE REGULATORY AGENCIES REGULATORY AGENCY REGULATORY GAPS REGULATORY REQUIREMENTS REGULATORY SYSTEM REPO REPO MARKETS REPOS RESERVE RESERVE REQUIREMENT RETURNS RISK DIVERSIFICATION SAFETY NET SAVINGS SECURITIES SECURITIZATION SHORT-TERM REPOS SMALL BANKS SMALL LOAN SUPERVISORY AGENCIES SYSTEMIC RISK SYSTEMIC RISKS THIRD WORLD TRADE FINANCING TRADES TRADING TRADITIONAL BANKING TRANSFER OF SECURITIES UNDERLYING ASSET VALUATION VALUATION CHANGES VALUE OF COLLATERAL WHOLESALE FINANCIAL MARKET WHOLESALE FUNDING WHOLESALE MARKET |
| spellingShingle |
ACCESS TO CREDIT ACCOUNTING ADVANCED COUNTRIES ADVANCED ECONOMIES ALTERNATIVE FUNDING ALTERNATIVE SOURCES OF FINANCING ARBITRAGE ASSET BACKED SECURITIES ASSET MANAGERS ASSET PRICES ASSET VALUES BALANCE SHEET BALANCE SHEETS BANK ACTIVITIES BANK BALANCE SHEETS BANK CREDIT BANK DEPOSITS BANK INTERMEDIATION BANK LENDING BANK LOANS BANK POLICY BANK RUN BANKING INSTITUTIONS BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKS BONDS BORROWER BORROWING BROKER BROKERAGE BROKERAGE FIRMS BROKERS BUSINESS CYCLE CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS COLLATERAL COMMERCIAL BANK COMMERCIAL BANK DEPOSITS COMMERCIAL BANKING COMMERCIAL BANKS COMMERCIAL LENDERS COMMERCIAL PAPERS CONTAGION CONVERTIBLE DEBT COOPERATIVE BANKS CREDIT AVAILABILITY CREDIT EXTENSION CREDIT INTERMEDIATION CREDIT MARKETS CREDIT NEEDS CREDIT PRODUCTS CREDIT RISK CREDIT RISK MANAGEMENT CREDIT RISKS CREDIT SPREADS CREDIT UNIONS CUSTODIAN BANKS DATA AVAILABILITY DEBT DEBT OBLIGATIONS DEFAULTS DEPOSIT DEPOSIT INSURANCE DEPOSITS DERIVATIVE DEVELOPING COUNTRIES DEVELOPING ECONOMIES DIVIDENDS ECONOMIC POLICY EMERGING MARKET EMERGING MARKETS END-BORROWERS EQUITY FUNDS EQUITY TRADING EXPOSURE EXPOSURES FACTORING FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF NEW YORK FINANCE COMPANIES FINANCIAL CRISIS FINANCIAL INSTABILITY FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL REFORM FINANCIAL RISKS FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR STABILITY FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEM STABILITY FINANCIAL SYSTEMS FOREIGN CURRENCY FORMAL BANKS FORMAL FINANCIAL SECTOR FUND INVESTMENTS FUND MANAGEMENT FUNDING SOURCES FUTURES GLOBAL ECONOMY GOVERNMENT BONDS HEDGE FUND HIDDEN RISKS HIGH INTEREST RATES HOLDINGS HOUSEHOLDS IMPLICIT SUPPORT INFRASTRUCTURE PROJECTS INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INSURED DEPOSITS INTEREST RATE INTEREST RATE CEILINGS INTEREST RATES INTERNATIONAL FINANCE ISSUANCE LAWS LENDER LENDERS LENDERS OF LAST RESORT LETTERS OF CREDIT LIQUIDITY LIQUIDITY RISKS LOAN ORIGINATION LOCAL BANKS MACROECONOMIC MANAGEMENT MARKET CONFIDENCE MARKET VALUE MATURITY MATURITY TRANSFORMATION MICROFINANCE MONETARY FUND MONETARY POLICY MONEY LENDERS MONEY MARKET MUTUAL FUNDS NEW PRODUCTS NONBANK FINANCIAL INSTITUTIONS NONBANKS NONPERFORMING LOANS OUTSTANDING LOANS PAWN PAWN SHOPS PENSION PENSION FUNDS PENSIONS PRIVATE LENDERS PRIVATE LENDING PRIVATE PENSION PRIVATE SECTOR DEVELOPMENT PRUDENTIAL REGULATIONS PUBLIC PENSION RAPID GROWTH REAL ESTATE REGULATORY AGENCIES REGULATORY AGENCY REGULATORY GAPS REGULATORY REQUIREMENTS REGULATORY SYSTEM REPO REPO MARKETS REPOS RESERVE RESERVE REQUIREMENT RETURNS RISK DIVERSIFICATION SAFETY NET SAVINGS SECURITIES SECURITIZATION SHORT-TERM REPOS SMALL BANKS SMALL LOAN SUPERVISORY AGENCIES SYSTEMIC RISK SYSTEMIC RISKS THIRD WORLD TRADE FINANCING TRADES TRADING TRADITIONAL BANKING TRANSFER OF SECURITIES UNDERLYING ASSET VALUATION VALUATION CHANGES VALUE OF COLLATERAL WHOLESALE FINANCIAL MARKET WHOLESALE FUNDING WHOLESALE MARKET Ghosh, Swati Gonzalez del Mazo, Ines Ötker-Robe, İnci Chasing the Shadows : How Significant is Shadow Banking in Emerging Markets? |
| relation |
Economic premise;no. 88 |
| description |
Broadly defined as credit intermediation
involving entities and activities outside the regular
banking system, shadow banking raises important policy
concerns. Given significant challenges with data
availability, the size, nature and significance of shadow
banking in emerging market and developing economies (EMDEs)
are even less discussed and understood. Shadow banking in
EMDEs generally does not involve long, complex, opaque
chains of intermediation, as is often the case in advanced
economies. Nonetheless, it can pose systemic risks, both
directly, as its importance in the total financial system
grows (with the concomitant credit, market, and liquidity
risks that its participants undertake), and indirectly
through its interconnectedness with the regulated banking
system. At the same time, shadow banks also play an
important role in channeling alternative funding sources to
EMDEs, especially as deleveraging pressures from European
banks continue. This suggests that policy makers need to
manage trade-offs carefully to ensure that shadow banks
provide alternative but safe sources of funding to the
private sector without generating additional systemic risks.
Based on a snapshot of selected EMDEs in East Asia and in
Central and Eastern Europe, and subject to caveats dictated
by limited data availability, the shadow banking system is
relatively small in most EMDEs, but has grown markedly in
recent years, reaching a not insignificant share of the
financial system in some countries, while remaining largely unregulated. |
| format |
Publications & Research :: Brief |
| author |
Ghosh, Swati Gonzalez del Mazo, Ines Ötker-Robe, İnci |
| author_facet |
Ghosh, Swati Gonzalez del Mazo, Ines Ötker-Robe, İnci |
| author_sort |
Ghosh, Swati |
| title |
Chasing the Shadows : How Significant is Shadow Banking in Emerging Markets? |
| title_short |
Chasing the Shadows : How Significant is Shadow Banking in Emerging Markets? |
| title_full |
Chasing the Shadows : How Significant is Shadow Banking in Emerging Markets? |
| title_fullStr |
Chasing the Shadows : How Significant is Shadow Banking in Emerging Markets? |
| title_full_unstemmed |
Chasing the Shadows : How Significant is Shadow Banking in Emerging Markets? |
| title_sort |
chasing the shadows : how significant is shadow banking in emerging markets? |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2012/09/16728825/chasing-shadows-significant-shadow-banking-emerging-markets http://hdl.handle.net/10986/17088 |
| _version_ |
1764435128837210112 |
| spelling |
okr-10986-170882021-04-23T14:03:33Z Chasing the Shadows : How Significant is Shadow Banking in Emerging Markets? Ghosh, Swati Gonzalez del Mazo, Ines Ötker-Robe, İnci ACCESS TO CREDIT ACCOUNTING ADVANCED COUNTRIES ADVANCED ECONOMIES ALTERNATIVE FUNDING ALTERNATIVE SOURCES OF FINANCING ARBITRAGE ASSET BACKED SECURITIES ASSET MANAGERS ASSET PRICES ASSET VALUES BALANCE SHEET BALANCE SHEETS BANK ACTIVITIES BANK BALANCE SHEETS BANK CREDIT BANK DEPOSITS BANK INTERMEDIATION BANK LENDING BANK LOANS BANK POLICY BANK RUN BANKING INSTITUTIONS BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKS BONDS BORROWER BORROWING BROKER BROKERAGE BROKERAGE FIRMS BROKERS BUSINESS CYCLE CAPITAL MARKETS CENTRAL BANK CENTRAL BANKS COLLATERAL COMMERCIAL BANK COMMERCIAL BANK DEPOSITS COMMERCIAL BANKING COMMERCIAL BANKS COMMERCIAL LENDERS COMMERCIAL PAPERS CONTAGION CONVERTIBLE DEBT COOPERATIVE BANKS CREDIT AVAILABILITY CREDIT EXTENSION CREDIT INTERMEDIATION CREDIT MARKETS CREDIT NEEDS CREDIT PRODUCTS CREDIT RISK CREDIT RISK MANAGEMENT CREDIT RISKS CREDIT SPREADS CREDIT UNIONS CUSTODIAN BANKS DATA AVAILABILITY DEBT DEBT OBLIGATIONS DEFAULTS DEPOSIT DEPOSIT INSURANCE DEPOSITS DERIVATIVE DEVELOPING COUNTRIES DEVELOPING ECONOMIES DIVIDENDS ECONOMIC POLICY EMERGING MARKET EMERGING MARKETS END-BORROWERS EQUITY FUNDS EQUITY TRADING EXPOSURE EXPOSURES FACTORING FEDERAL RESERVE FEDERAL RESERVE BANK FEDERAL RESERVE BANK OF NEW YORK FINANCE COMPANIES FINANCIAL CRISIS FINANCIAL INSTABILITY FINANCIAL INSTRUMENTS FINANCIAL INTERMEDIARIES FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL PRODUCTS FINANCIAL REFORM FINANCIAL RISKS FINANCIAL SECTOR ASSESSMENT FINANCIAL SECTOR STABILITY FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL SYSTEM STABILITY FINANCIAL SYSTEMS FOREIGN CURRENCY FORMAL BANKS FORMAL FINANCIAL SECTOR FUND INVESTMENTS FUND MANAGEMENT FUNDING SOURCES FUTURES GLOBAL ECONOMY GOVERNMENT BONDS HEDGE FUND HIDDEN RISKS HIGH INTEREST RATES HOLDINGS HOUSEHOLDS IMPLICIT SUPPORT INFRASTRUCTURE PROJECTS INSTITUTIONAL INVESTORS INSURANCE INSURANCE COMPANIES INSURED DEPOSITS INTEREST RATE INTEREST RATE CEILINGS INTEREST RATES INTERNATIONAL FINANCE ISSUANCE LAWS LENDER LENDERS LENDERS OF LAST RESORT LETTERS OF CREDIT LIQUIDITY LIQUIDITY RISKS LOAN ORIGINATION LOCAL BANKS MACROECONOMIC MANAGEMENT MARKET CONFIDENCE MARKET VALUE MATURITY MATURITY TRANSFORMATION MICROFINANCE MONETARY FUND MONETARY POLICY MONEY LENDERS MONEY MARKET MUTUAL FUNDS NEW PRODUCTS NONBANK FINANCIAL INSTITUTIONS NONBANKS NONPERFORMING LOANS OUTSTANDING LOANS PAWN PAWN SHOPS PENSION PENSION FUNDS PENSIONS PRIVATE LENDERS PRIVATE LENDING PRIVATE PENSION PRIVATE SECTOR DEVELOPMENT PRUDENTIAL REGULATIONS PUBLIC PENSION RAPID GROWTH REAL ESTATE REGULATORY AGENCIES REGULATORY AGENCY REGULATORY GAPS REGULATORY REQUIREMENTS REGULATORY SYSTEM REPO REPO MARKETS REPOS RESERVE RESERVE REQUIREMENT RETURNS RISK DIVERSIFICATION SAFETY NET SAVINGS SECURITIES SECURITIZATION SHORT-TERM REPOS SMALL BANKS SMALL LOAN SUPERVISORY AGENCIES SYSTEMIC RISK SYSTEMIC RISKS THIRD WORLD TRADE FINANCING TRADES TRADING TRADITIONAL BANKING TRANSFER OF SECURITIES UNDERLYING ASSET VALUATION VALUATION CHANGES VALUE OF COLLATERAL WHOLESALE FINANCIAL MARKET WHOLESALE FUNDING WHOLESALE MARKET Broadly defined as credit intermediation involving entities and activities outside the regular banking system, shadow banking raises important policy concerns. Given significant challenges with data availability, the size, nature and significance of shadow banking in emerging market and developing economies (EMDEs) are even less discussed and understood. Shadow banking in EMDEs generally does not involve long, complex, opaque chains of intermediation, as is often the case in advanced economies. Nonetheless, it can pose systemic risks, both directly, as its importance in the total financial system grows (with the concomitant credit, market, and liquidity risks that its participants undertake), and indirectly through its interconnectedness with the regulated banking system. At the same time, shadow banks also play an important role in channeling alternative funding sources to EMDEs, especially as deleveraging pressures from European banks continue. This suggests that policy makers need to manage trade-offs carefully to ensure that shadow banks provide alternative but safe sources of funding to the private sector without generating additional systemic risks. Based on a snapshot of selected EMDEs in East Asia and in Central and Eastern Europe, and subject to caveats dictated by limited data availability, the shadow banking system is relatively small in most EMDEs, but has grown markedly in recent years, reaching a not insignificant share of the financial system in some countries, while remaining largely unregulated. 2014-02-18T22:10:17Z 2014-02-18T22:10:17Z 2012-09 http://documents.worldbank.org/curated/en/2012/09/16728825/chasing-shadows-significant-shadow-banking-emerging-markets http://hdl.handle.net/10986/17088 English en_US Economic premise;no. 88 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Brief Publications & Research |