Detail publikace

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

Originální název

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

Anglický název

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

Jazyk

en

Originální abstrakt

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.

Anglický abstrakt

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.

BibTex


@inproceedings{BUT116816,
  author="Zuzana {Kučerová} and Jitka {Poměnková}",
  title="The Role of Banking and Shadow Banking Sector
in the Euro Area",
  annote="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.",
  address="Vysokoškolský podnik Liberec, spol. s r.o.,",
  booktitle="33th  International  Conference  Mathematical  Methods  in  Economics 2016 Conference Proceedings",
  chapter="116816",
  edition="1",
  howpublished="print",
  institution="Vysokoškolský podnik Liberec, spol. s r.o.,",
  year="2016",
  month="september",
  pages="471--476",
  publisher="Vysokoškolský podnik Liberec, spol. s r.o.,",
  type="conference paper"
}