The Role of Banking and Shadow Banking Sector in the Euro Area

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26220%2F16%3APU115462" target="_blank" >RIV/00216305:26220/16:PU115462 - isvavai.cz</a>

Result on the web

<a href="http://mme2016.tul.cz/conferenceproceedings/mme2016_conference_proceedings.pdf" target="_blank" >http://mme2016.tul.cz/conferenceproceedings/mme2016_conference_proceedings.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

The Role of Banking and Shadow Banking Sector in the Euro Area

Original language description

Shadow banking activities can be associated with the potential financial instability because these activities are realised outside the regulated banking sector. The aim of the paper is to assess the relationship between the banking and shadow banking activities and lending standards imposed by banking institutions in nine Euro Area countries using a method of regression and correlation analysis and a wavelet approach. We use quarterly data over the period 2003-2013. When measuring the shadow banking activity at national level, the shadow banking activities are most extensive in Austria, Belgium, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. We conclude that banking institutions originated fewer loans in reaction to tighter lending standards (imposed by these banking insti-tutions on their loans). However, the expected positive impact of tighter lending standards on loans provided by shadow banking institutions is not confirmed. We can also admit flexible reactions of OFIs to a current economic situation during the analysed period while the behaviour of MFIs followed a long-term strategy, i.e. banks did not react to short-term objectives as frequently as non-banks. In this con-text, we can conclude that banks met their stabilising role in the economy while non-banks tried to fill up gaps in the financial markets.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

10103 - Statistics and probability

Project

Result was created during the realization of more than one project. More information in the Projects tab.

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2016

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

33th International Conference Mathematical Methods in Economics 2016 Conference Proceedings

ISBN

978-80-7494-296-9

ISSN

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e-ISSN

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Number of pages

6

Pages from-to

471-476

Publisher name

Vysokoškolský podnik Liberec, spol. s r.o.,

Place of publication

Liberec

Event location

Liberec

Event date

Sep 6, 2016

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

000385239500081