A Review on the Impact of Shadow Banking on Financial Markets Prudential Regulation

Abstract The evolution of shadow banking sector in terms structure (concentration institutions), expanded connections with banks, and activities there was an increase the systemic relevance these entities. aim this paper is to review relevant literature on topic progress that has been made regarding implementation macro-prudential policies since global financial crisis 2008. As highlighted, should be considered a source risk it essential identify its potential effects downturn. We examine empirical studies have carried out recent nonbank regulation. Based our findings, main results pointed academic research conducted field focused link between risk. collapse one institution widespread could trigger series failures directly threatens stability whole system.