The impacts of Shadow banking system on economy. An empirical analysis

This paper analyzes the impacts of Shadow banking system (SBS) on the nominal and real economy. It studies the SBS's data of 14 countries for 13 years using Generalizing estimation equation (GEE) method in SPSS statistics. The results showed that the increase in SBS was associated with large in...

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Bibliographic Details
Published inJournal of applied finance and banking Vol. 9; no. 3; pp. 1 - 11
Main Authors Hussain, Altaf, Bao, Jianbo, Fanli
Format Journal Article
LanguageEnglish
Published Athens Scientific Press International Limited 01.05.2019
Subjects
Banking industry
Central banks
Dependent variables
Economic crisis
Estimates
GDP
Gross Domestic Product
International finance
Monetary policy
Regulation of financial institutions
Researchers
Reserve requirements
Shadow banking
Variables
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Summary:This paper analyzes the impacts of Shadow banking system (SBS) on the nominal and real economy. It studies the SBS's data of 14 countries for 13 years using Generalizing estimation equation (GEE) method in SPSS statistics. The results showed that the increase in SBS was associated with large increase in nominal GDP rather than real GDP and thus causing nominal indicators of the economy to grow more than real ones. The paper concluded by suggesting that the SBS should be regulated and its size should be reduced from the current level to make financial system more stable and prevent future financial crisis.
ISSN:1792-6580
1792-6599