Mapping the interconnectedness between EU banks and shadow banking entities
Abad, Jorge (Centro de Estudios Monetarios y Financieros)
D'Errico, Marco
Killeen, Neill
Luz, Vera
Peltonen, Tuomas
Portes, Richard
Urbano, Teresa

Date:	2018
Abstract:	This paper provides a unique snapshot of the exposures of EU banks to shadow banking entities within the global financial system. Drawing on a rich and novel dataset, the paper documents the cross-sector and cross-border linkages and considers which are the most relevant for systemic risk monitoring. From a macroprudential perspective, the identification of potential feedback and contagion channels arising from the linkages of banks and shadow banking entities is particularly challenging when shadow banking entities are domiciled in different jurisdictions. The analysis shows that many of the EU banks' exposures are towards non-EU entities, particularly US-domiciled shadow banking entities. At the individual level, banks' exposures are diversified although this diversification leads to high overlap across different types of shadow banking entities.
Abstract:	The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396.
Grants:	European Commission 649396
Rights:	Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, la comunicació pública de l'obra i la creació d'obres derivades, fins i tot amb finalitats comercials, sempre i quan es reconegui l'autoria de l'obra original.
Language:	Anglès
Series:	Barcelona Graduate School of Economics. ADEMU working paper series
Series:	ADEMU Working Paper Series ; 114
Document:	Working paper
Subject:	Interconnectedness ; Shadow banking ; Financial stability ; Macroprudential

Adreça alternativa: https://hdl.handle.net/10230/35501

42 p, 1.2 MB

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Research literature > Working papers