Year of Graduation
Shadow Banking Regulation as a Mitigator of Crisis Development
Through the last two decades the shadow banking system has represented itself as quite fragile and unstable field where a great amount of financial transactions is conducted. Shadow banking entities performing the role of the financial intermediary have an access to a great amount of liquidity in a form of deposits and credit liabilities. The financial crisis of 2008 has created a powerful incentive for authorities of different countries to review their regulating policy concerning the shadow banking system. However, not all actions aimed at ensuring the stability in this field are considered as effective enough. The purpose of the study is to provide more effective and flexible model that will be able to regulate the shadow banking system. Before making up the model, the analysis was employed to select key institutions that have the most detrimental effect on the stability of the shadow banking system. The model was built with the help of the simple regression. The adequacy of the model was tested on the US economic system. The results of the research can be implied within a macroeconomic policy of a country.