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Disentangling the “shadow banking” methaphor

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  • Héctor Labat Moles

Abstract

This article reviews the literature on “shadow banking”, recognizing the multiple meanings given to each of its component terms. Broadly, the expression refers to activities also performed by traditional banking (“banking”) but through different means (“shadow”). Examining the fifty most cited publications, this article identifies nine interpretations of the term “banking” and eleven of the term “shadow”, combined in twenty-one different ways, out of which three stand out: (i) maturity transformation with no public guarantee, (ii) non-bank maturity transformation and (iii) non-bank financial intermediation. Publications are often ambiguous and inconsistent in their interpretations due to challenges in analysing contemporaneous financial systems.

Suggested Citation

  • Héctor Labat Moles, 2026. "Disentangling the “shadow banking” methaphor," BCL working papers 203, Central Bank of Luxembourg.
    • Handle: RePEc:bcl:bclwop:bclwp203
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    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • 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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