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 April 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.
Relevant Posts
- ECB Banking Supervision, (2017), “Guidance to banks on non-performing loans”, ECB, March
- Onado, Marco, (2017), “In search of a European solution for banks’ non-performing loans”, VoxEu, 21 February