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Mapping the interconnectedness between EU banks and shadow banking entities

Abad, Jorge, D’Errico, Marco, Killeen, Neill, Luz, Vera, Peltonen, Tuomas, Portes, Richard, Urbano, Teresa, (2017), “Mapping the interconnectedness between EU banks and shadow banking entities”, Vox EU, 25 Απριλίου 2017

The Global Crisis exposed shortcomings in the assessment of cross-sector and cross-border linkages in the financial system. The interaction of banks and insurance corporations with shadow banking entities led to the amplification of risks and spillovers which were transmitted across sectors and national borders. Shadow banking entities can form part of complex financial intermediation chains which can also include banks, so mapping their linkages is important.

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