Shadow Bank Monitoring

35 Pages Posted: 3 Oct 2013

See all articles by Tobias Adrian

Tobias Adrian

International Monetary Fund

Adam B. Ashcraft

Federal Reserve Bank of New York

Nicola Cetorelli

Federal Reserve Bank of New York

Date Written: September 1, 2013

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

Suggested Citation

Adrian, Tobias and Ashcraft, Adam B. and Cetorelli, Nicola, Shadow Bank Monitoring (September 1, 2013). FRB of New York Staff Report No. 638. Available at SSRN: https://ssrn.com/abstract=2334918 or http://dx.doi.org/10.2139/ssrn.2334918

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 B. 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)

Nicola Cetorelli

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States
212-720-5071 (Phone)
212-720-8363 (Fax)

HOME PAGE: http://nyfedeconomists.org/cetorelli/

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