Shadow Banking and the Banking System: Assessing contagion channels and systemic risk implications

Details

Supervisors

Fontan, Clément

Faculty

Institut d'études européennes Saint-Louis

Degree label

Master de spécialisation interdisciplinaire en études européennes (horaire décalé)

Abstract

enThis dissertation examines whether interactions between the shadow banking system and the traditional banking sector can generate contagion from shadow banking entities to traditional banks and contribute to systemic financial risk. By analysing financial intermediation regulation and shadow banking from theoretical, historical and practical perspectives, the dissertation shows how risks can be transferred, transformed, and re-embedded across the banking and the non-banking sector. The analysis finds that vulnerabilities in the non-bank sector can reverberate back to banks, as illustrated by recent episodes of financial stress, suggesting that financial stability depends on a comprehensive understanding of the bank and non-bank system rather than a sector-specific regulatory approach.