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Shadow Banking Regulation

64 Pages Posted: 20 Apr 2012  

Tobias Adrian

International Monetary Fund

Adam B. Ashcraft

Federal Reserve Bank of New York

Multiple version iconThere are 2 versions of this paper

Date Written: April 1, 2012

Abstract

Shadow banks conduct credit intermediation without direct, explicit access to public sources of liquidity and credit guarantees. Shadow banks contributed to the credit boom in the early 2000s and collapsed during the financial crisis of 2007-09. We review the rapidly growing literature on shadow banking and provide a conceptual framework for its regulation. Since the financial crisis, regulatory reform efforts have aimed at strengthening the stability of the shadow banking system. We review the implications of these reform efforts for shadow funding sources including asset-backed commercial paper, triparty repurchase agreements, money market mutual funds, and securitization. Despite significant efforts by lawmakers, regulators, and accountants, we find that progress in achieving a more stable shadow banking system has been uneven.

Keywords: shadow banking, financial regulation

JEL Classification: G28, G20, G24, G01

Suggested Citation

Adrian, Tobias and Ashcraft, Adam B., Shadow Banking Regulation (April 1, 2012). FRB of New York Staff Report No. 559. Available at SSRN: https://ssrn.com/abstract=2043153 or http://dx.doi.org/10.2139/ssrn.2043153

Tobias Adrian (Contact Author)

International Monetary Fund ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

HOME PAGE: http://www.tobiasadrian.com

Adam Ashcraft

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045-0001
United States
212-720-1617 (Phone)
212-720-8363 (Fax)

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