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Bringing the flashlight: Shadow banking in European Union countries

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  • Hodula, Martin

Abstract

Compiling a unique shadow banking dataset for 24 European Union countries, I study the determinants of shadow banking for a pool of “Old” and “New” EU member countries. I document that the impact of various macro-financial shocks on shadow banking sector significantly differs between the two panels. The differences can be seemingly well explained by the different nature of the shadow banking in the two pools. I find evidence in support to the view that shadow banks act like substitutes to traditional banks in the “New”, while they serve mostly as complements in the “Old” member countries.

Suggested Citation

  • Hodula, Martin, 2022. "Bringing the flashlight: Shadow banking in European Union countries," Finance Research Letters, Elsevier, vol. 47(PB).
    • Handle: RePEc:eee:finlet:v:47:y:2022:i:pb:s1544612321005948
    DOI: 10.1016/j.frl.2021.102668
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    References listed on IDEAS

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    Cited by:

    1. Hodula, Martin & Škrabić Perić, Blanka & Sorić, Petar, 2023. "Economic uncertainty and non-bank financial intermediation: Evidence from a European panel," Finance Research Letters, Elsevier, vol. 53(C).
    2. Dong, Yan & Dong, Mengyao & Tan, Suhang & Ge, Ran, 2024. "Shadow banking, financial regulation, and bank risk in China," Finance Research Letters, Elsevier, vol. 63(C).

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    More about this item

    Keywords

    Determinants; EU countries; Panel; Shadow banking;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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