The Typology of Shadow Banking

  • Luc Nijs


Retaking what was identified in Chap.  1, five key topics become paramount when defining shadow banking activities: credit transformation, maturity transformation, liquidity transformation, imperfect transfer of credit risk and leverage. With a good understanding of those five concepts and deeply documented in how shadow banking activities historically emerged, we are armed to start the actual analysis. Shadow banking activities are always the result of regulation combined with demand for something. That has implications. Both items are evolving and dynamics features which imply that shadow banking will also evolve over time and the underlying business models applied will undeniably change. And so does the way we measure, analyze and regulate those activities. History will and should be our guide when looking at the wide variety of shadow banking measurement models.

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© The Author(s) 2020

Authors and Affiliations

  • Luc Nijs
    • 1
  1. 1.Hong KongChina

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