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Shedding Light on Shadow Banking
Author:
Artak Harutyunyan null

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,
Mr. Alexander Massara
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Giovanni Ugazio null

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Goran Amidžic null

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Richard Walton null

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Series:
IMF Working Papers
Volume/Issue:
Volume 2015: Issue 001
Language:
English
Publication Date:
05 Jan 2015
DOI:
https://doi.org/10.5089/9781498391788.001
ISBN:
9781498391788
ISSN:
1018-5941
Pages:
43
Keywords:
WP; noncore liability; core funding; intra-SBS position; liabilities measure; funding structure; shadow banking; noncore liabilities; financial intermediation; SBS position; Noncore ratio indicator; funding source; Nonbank financial institutions; Securities; Global; Africa
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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In this paper, we develop an alternative approach to estimate the size of the shadow banking system, using official data reported to the IMF complemented by other data sources. We base our alternative approach on the expansion of the noncore liabilities concept developed in recent literature to encompass all noncore liabilities of both bank and nonbank financial institutions. As opposed to existing measures of shadow banking, our newly developed measures capture nontraditional funding raised by traditional banks. We apply the new approach to 26 jurisdictions and analyze the results over a twelve-year span. We find that noncore liabilities are procyclical and display more volatility than core liabilities for most jurisdictions in the sample. We also compare our measures to existing measures, such as the measure developed by the Financial Stability Board. Our approach can be replicated over time using internationally-comparable data and thus may serve as an operational tool for IMF surveillance and policy analysis.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund