Shadow Banking Within and Across National Borders

Generally thought to be an under-regulated sector, the shadow banking system has been identified as having a significant role in the recent global financial crisis. In recent years, it has also been growing rapidly in emerging markets. Yet, little is known about its size, scope and operations; nor its benefits and costs to society. Shadow Banking Within and Across National Borders consists of a proceedings of a conference held at the Federal Reserve Bank of Chicago, in November 2013. Edited by Stijn Claessens, Douglas Evanoff, George Kaufman and Luc Laeven, this volume brings together leading industry scholars to examine various aspects of the shadow banking system. The contributors of this volume debate issues which include defining and quantifying shadow banking; the causes of the development of the sector; its role in the recent financial crisis; the implications for financial stability; the social benefits of the sector; the associated challenges for financial supervision and regulation; and alternative policy options to address problems created by the sector.

• Special Addresses:
  • The Fire-Sales Problem and Securities Financing Transactions (Jeremy C Stein)
  • Too Much Debt, Financial System Stability, and Wider Economic Impacts (Adair Turner)
• Description, Measurement, and History of Shadow Banking:
  • Shadow Banking: Challenges for Global Monitoring and Regulation (Nicola Cetorelli)
  • Traditional Banks, Shadow Banks, and Financial Stability (Diana Hancock and Wayne Passmore)
  • Bagehot was a Shadow Banker: Shadow Banking, Central Banking, and the Future of Global Finance (Perry Mehrling, Zoltan Pozsar, James Sweeney, and Daniel H Neilson)
• Causes of the Development of the Shadow Sector:
  • What Drives Shadow Banking? Evidence from Short-Term Business Credit (John V Duca)
  • Leverage, Securitization and Shadow Banking: Theory and Policy (Ana Fostel and John Geanakoplos)
  • Evolution in Bank Complexity (Nicola Cetorelli, James McAndrews, and James Traina)
• Implications for Financial Stability:
  • Financial Stability Policies for Shadow Banking (Tobias Adrian)
  • Shadow Banking — What are We Really Worried About? (Laura E Kodres)
  • Derivatives and Bankruptcy (Steven L Schwarcz and Ori Sharon)
  • The Roots of Shadow Banking (Enrico Perotti)
  • Ex-ante Securitization versus Ex-post Fire-Scales under Various Policy Interventions (Alexandros P Vardoulakis)
• Challenges for Supervision and Regulation:
  • Financial Market Infrastructure: A Challenge to the Supervision and Regulation of the Financial System (Darrell Duffie)
  • Dividing (and Conquering?) Shadows: FSB and US Approaches to Shadow Banking Entities and Activities (Edward F Greene and Elizabeth L Broomfield)
  • Money Market Funds: Reconsidering the Mutual Fund Model (Patrick E McCabe)
• Shadow Banking around the World and Cross-Border Issues:
  • Shadow Banking and the Global Financial Eco-System (Zoltan Pozsar)
  • Cross-Border Challenges in Addressing Shadow-Banking Risks (Yasushi Shiina and Eva H G Hüpkes)
  • Shadow Banking: A European Perspective (Stan Maes)
  • Collateral: Cross-Border Issues (Manmohan Singh)
• Public Policy: Where to from Here?:
  • Shadow Banking: Where from Here? (Sarah Breeden)
  • What is Shadow Banking? (Stijn Claessens and Lev Ratnovski)
  • Exploring Systemic Risks in European Securities Financing Transactions: First Steps to Close Data Gaps (Joachim Keller)