Articles are shown from 2010. For earlier articles, please consult the main Banking, Securities and Asset Management sections of the website.
Shadow banking is the system of credit intermediation that involves entities and activities that are outside the regular banking system, and thus are not regulated like banks. Shadow banking entities operate outside the regular banking system, and yet engage in the following bank-like activities: accepting funding with deposit-like characteristics; performing maturity and/or liquidity transformation; undergoing credit risk transfer; and using direct or indirect financial leverage.
Shadow banking activities are those that could act as important sources of funding for non-bank entities. These activities include securitisation, securities lending and repurchase transactions ("repo").
Shadow banking entities include i.a.: Special purpose entities which perform liquidity and/or maturity transformation, e.g. ABCP, SIV, SPV; Money Market Funds (MMFs) and other types of investment funds or products with deposit-like characteristics; and investment funds that provide credit or are leveraged, including Exchange Traded Funds (ETFs).
For further information, see Green Paper FAQs, 19.3.12
Communication from the Commission to the Council and the European Parliament: Shadow Banking – Addressing New Sources of Risk in the Financial Sector
Regulation on transparency of securities financing transactions