Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93632
Authors: 
Adrian, Tobias
Ashcraft, Adm B.
Year of Publication: 
2012
Series/Report no.: 
Staff Report, Federal Reserve Bank of New York 580
Abstract: 
We provide an overview of the rapidly evolving literature on shadow credit intermediation. 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. Much of shadow banking activities is intertwined with the operations of core regulated institutions such as bank holding companies and insurance companies, thus creating a source of systemic risk for the financial system at large. We review fundamental reasons for the existence of shadow banking, explain the functioning of shadow banking institutions and activities, discuss why shadow banks need to be regulated, and review the impact of recent reform efforts on shadow banking credit intermediation.
Subjects: 
shadow banking
financial intermediation
JEL: 
E44
G00
G01
G28
Document Type: 
Working Paper

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