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Shadow bank monitoring

Author

Listed:
  • Tobias Adrian
  • Adam B. Ashcraft
  • Nicola Cetorelli

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.

Suggested Citation

  • Tobias Adrian & Adam B. Ashcraft & Nicola Cetorelli, 2013. "Shadow bank monitoring," Staff Reports 638, Federal Reserve Bank of New York.
  • Handle: RePEc:fip:fednsr:638
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    References listed on IDEAS

    as
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    Cited by:

    1. Adrian, Tobias, 2014. "Financial stability policies for shadow banking," Staff Reports 664, Federal Reserve Bank of New York.

    More about this item

    Keywords

    Liquidity (Economics) ; Financial stability ; Intermediation (Finance) ; Financial institutions ; Systemic risk;

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