The Impact of Shadow Banking on the Financial Stability: Evidence from G20 Countries

Zarei, Mehran; Esfandiari, Marziyeh; Mirjalili, Seyed Hossein

doi:10.52547/jme.16.2.237

Cited by 3 publications

(1 citation statement)

References 16 publications

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“…This sector includes money market funds and other funds using financial leverage, securities and derivatives dealers, securitizations, securities financing transactions, and derivatives, as well as emerging actors such as digital lenders and stablecoins. Zarei et al (2021) argue that the concept of shadow banking emerged as a result of the financial crisis of 2007-2009. Their study examines the impact of shadow banking on financial stability in the context of the 2007-2009 crisis. Based on data from 14 G20 countries between 2002 and 2018, the study categorizes countries into four groups based on the level of shadow banking activity and employs quantile regression.…”

Section: Conceptual Dimensions Of Shadow Bankingmentioning

confidence: 99%

Quantifying Impact, Uncovering Trends: A Comprehensive Bibliometric Analysis of Shadow Banking and Financial Contagion Dynamics

Nica,

Delcea,

Chiriță

et al. 2024

IJFS

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This study describes a comprehensive bibliometric analysis of shadow banking and financial contagion dynamics from 1996 to 2022. Through a holistic approach, our study focuses on quantifying the impact and uncovering significant trends in scientific research related to these interconnected fields. Using advanced bibliometric methods, we explored the global network of publications, identifying key works, influential authors, and the evolution of research over time. The results of the bibliometric analysis have highlighted an annual growth rate of 22.05% in publications related to the topics of shadow banking and financial contagion, illustrating researchers’ interest and the dynamic nature of publications over time. Additionally, significant increases in scientific production have been recorded in recent years, reaching a total of 178 articles published in 2022. The most predominant keywords used in research include “systemic risks”, “risk assessment”, and “measuring systemic risk”. The thematic evolution has revealed that over time, the focus on fundamental concepts used in analyzing these two topics has shifted, considering technological advancements and disruptive events that have impacted the economic and financial system. Our findings provide a detailed insight into the progress, gaps, and future directions in understanding the complex interplay of shadow banking and financial contagion. Our study represents a valuable asset for researchers, practitioners, and policymakers with a keen interest in understanding the dynamics of these critical components within the global financial system.

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Section: Conceptual Dimensions Of Shadow Bankingmentioning

confidence: 99%

Quantifying Impact, Uncovering Trends: A Comprehensive Bibliometric Analysis of Shadow Banking and Financial Contagion Dynamics

Nica,

Delcea,

Chiriță

et al. 2024

IJFS

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Shadow banking and non-performing loans: international evidence

Isayev,

Farooq

2024

JFRC

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Purpose This paper aims to document the impact of shadow banking on non-performing loans (NPLs) of publicly listed banks in an international setting. Design/methodology/approach This paper uses the data from 27 countries and various estimation strategies to test the arguments presented in this paper. The sample covers the period between 2002 and 2020. Findings The empirical results suggest that banks headquartered in countries with high shadow banking activity have fewer NPLs than otherwise similar banks headquartered in countries with low shadow banking activity. The findings remain qualitatively the same in different sub-samples and after replacing the main variables with their alternate proxies. The paper also shows that this relationship is sensitive to bank-specific characteristics. Moreover, the paper also indicates that the stringency of banking regulations weakens the relationship between shadow banking and NPLs. Research limitations/implications The study’s data limitations prevent a detailed year-by-year analysis of NPLs and shadow banking, restricting insights into their evolving dynamics. In addition, the focus on country-level shadow banking data limits the exploration of how multinational banks’ activities in various jurisdictions impact individual banks’ NPLs. Originality/value The paper not only documents the effect of shadow banking on NPLs but also shows that the relationship between shadow banking and NPLs weakens as banking regulations become more stringent.

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Management of Innovations in Public Administration: Strategies to Prevent the Participation of Financial Intermediaries in Shadow Operations

Kuznyetsova

Tiutiunyk

Panimash

et al. 2022

MMI

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This article summarizes the arguments and counterarguments within the scientific discussion on improving public administration tools in the context of implementing innovative mechanisms for combating shadow financial transactions. The main purpose of this research is to formalize innovative strategies to counter the shadow withdrawal of capital with the participation of financial intermediaries. The systematization of scientific sources and approaches to solving the problem of the de-shadow economy proved that a characteristic feature of the functioning of the shadow market is the active participation of financial intermediaries in shadow operations. The information base is data from the World Bank and the Organization for Economic Cooperation and Development, the Group for the Development of Financial Measures to Combat Money Laundering, Transparency International, and the World Economic Forum. The period of the study is 2003-2021. The EU countries, Ukraine, Moldova, and Montenegro, as candidate countries for EU membership, were selected as the object of the study. This study applied the methods of bibliometric analysis to generalize the existing scientific work on the investigated issue, analysis of changes in the number of search changes on the problems of shadowing the economy, and clustering regions by the number of search queries on the shadow economy. Intellectual data analysis methods (one-dimensional branching CART and agglomeration methods) were used for clustering countries depending on the nature of the policy of countering the shadowing of the economy. Based on the results of the bibliometric analysis, theories describing the shadow economy, in particular: innovation theory, the theory of centralization, and institutional theory, were summarized. The article presents the results of cluster analysis, which proved the practicality of selecting three clusters of countries: cluster 1 – Cyprus, Czech Republic, Denmark, Finland, Greece, Ireland, Italy, Luxembourg, and Portugal; cluster 2 – Bulgaria, Croatia, Estonia, France, Malta, Netherlands, Spain, Sweden, Belgium, Greece, Austria, Hungary, and Slovak Republic, Slovenia; cluster 3 – Lithuania, Latvia, Romania, Poland, Moldova, Montenegro, and Ukraine. The study empirically confirmed and theoretically proved that the entire set of innovative scenarios for implementing economic de-shadowing policy could be divided into three types (evolutionary scenario, sequential transformation scenario, and forced scenario). The above scenarios depend on the speed of change in the indicators of developing the shadow economic sector and their sensitivity to the implemented measures.

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The Impact of Shadow Banking on the Financial Stability: Evidence from G20 Countries

Cited by 3 publications

References 16 publications

Quantifying Impact, Uncovering Trends: A Comprehensive Bibliometric Analysis of Shadow Banking and Financial Contagion Dynamics

Quantifying Impact, Uncovering Trends: A Comprehensive Bibliometric Analysis of Shadow Banking and Financial Contagion Dynamics

Shadow banking and non-performing loans: international evidence

Management of Innovations in Public Administration: Strategies to Prevent the Participation of Financial Intermediaries in Shadow Operations

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