Placing the Czech shadow banking sector under the light
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F20%3A10237881" target="_blank" >RIV/61989100:27510/20:10237881 - isvavai.cz</a>
Result on the web
<a href="https://pep.vse.cz/artkey/pep-202001-0001_placing-the-czech-shadow-banking-sector-under-the-light.php" target="_blank" >https://pep.vse.cz/artkey/pep-202001-0001_placing-the-czech-shadow-banking-sector-under-the-light.php</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.18267/j.pep.710" target="_blank" >10.18267/j.pep.710</a>
Alternative languages
Result language
angličtina
Original language name
Placing the Czech shadow banking sector under the light
Original language description
The size of the shadow banking sector (SBS) has more than doubled in the Czech Republic over the last decade. This places a potential burden on policy makers. On the one hand, the SBS complements regular banking by expanding access to credit and investments, enabling better risk sharing and maturity transformation, and supporting market liquidity. On the other hand, SBS activities can put the stability of the financial system at risk and amplify its procyclicality by exacerbating the buildup of leverage and asset price bubbles. We implement a FAVAR model of the Czech economy to determine the impact of macroeconomic factors on the SBS. We find that the SBS: (i) is sensitive to changes in market interest rates and term spread; (ii) exhibits great procyclicality; (iii) can act as a complement to regular banking and satisfy some additional demand for credit. We also define some potential risks of continued growth of the SBS, linked to our empirical evidence.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
<a href="/en/project/GA16-13784S" target="_blank" >GA16-13784S: Financial sector policy and institutions: Current challenges in balancing financial development and stability</a><br>
Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2020
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Prague Economic Papers
ISSN
1210-0455
e-ISSN
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Volume of the periodical
29
Issue of the periodical within the volume
1
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
26
Pages from-to
3-28
UT code for WoS article
000517763900001
EID of the result in the Scopus database
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