Report

Shadow bank monitoring


Abstract: We provide a framework for monitoring the shadow banking system. The shadow banking system consists of a web of specialized 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. Shadow banking activities are often intertwined with core regulated institutions such as bank holding companies, security brokers and dealers, and insurance companies. These interconnections of shadow banks with other financial institutions create sources of systemic risk for the broader financial system. We describe elements of monitoring risks in the shadow banking system, including recent efforts by the Financial Stability Board.

Keywords: shadow banking; financial stability monitoring; financial intermediation;

JEL Classification: E44; G00; G01; G28;

Access Documents

Authors

Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Staff Reports

Publication Date: 2013-09-01

Number: 638

Note: For a published version of this report, see Tobias Adrian, Adam B. Ashcraft, and Nicola Cetorelli, "Shadow Bank Monitoring," Oxford Handbook of Banking, 2nd Edition (Nov 2014): 378-409.