The objective of our article is to analyze the criticality of the deregulation of shadow banking system in different economic environments. It is defined like a financial intermediation system carried out outside the framework of classical banking and financial activities. Shadow banking system shows a lot of advantages in terms of the financing of the economy. It is an alternative for the investors and the economic agents. So it constitutes an alternative solution to the problematic of access to financial products of the classical banking system. It offers a possibility of diversification and socialization of risks while allowing an objective and more efficient allocation of financial resources without major constraint. Its activities are not illegal and it completes the classical financial banking system. Its usefulness is well established, but the need for its supervision remains an essential concern for economic agents. If shadow banking system is not regulated, it can bring about, in the market of capitals, toxic financial titles which are created by less credible financial entities. This can cause a disturbance of the economy and a deregulation of the global financial system. Like any other financial system, shadow banking has some risks which it spreads in the economic system if an adequate regulation, with well- established norms, does not govern its implementation.
| Published in | Economics (Volume 9, Issue 3) |
| DOI | 10.11648/j.eco.20200903.12 |
| Page(s) | 60-65 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Financial System, Shadow Banking, Regulation, Monetary System, Banking System
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APA Style
Mamadou Mbaye. (2020). Criticality Analysis of Shadow Banking System Deregulation. Economics, 9(3), 60-65. https://doi.org/10.11648/j.eco.20200903.12
ACS Style
Mamadou Mbaye. Criticality Analysis of Shadow Banking System Deregulation. Economics. 2020, 9(3), 60-65. doi: 10.11648/j.eco.20200903.12
AMA Style
Mamadou Mbaye. Criticality Analysis of Shadow Banking System Deregulation. Economics. 2020;9(3):60-65. doi: 10.11648/j.eco.20200903.12
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Download@article{10.11648/j.eco.20200903.12,
author = {Mamadou Mbaye},
title = {Criticality Analysis of Shadow Banking System Deregulation},
journal = {Economics},
volume = {9},
number = {3},
pages = {60-65},
doi = {10.11648/j.eco.20200903.12},
url = {https://doi.org/10.11648/j.eco.20200903.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.eco.20200903.12},
abstract = {The objective of our article is to analyze the criticality of the deregulation of shadow banking system in different economic environments. It is defined like a financial intermediation system carried out outside the framework of classical banking and financial activities. Shadow banking system shows a lot of advantages in terms of the financing of the economy. It is an alternative for the investors and the economic agents. So it constitutes an alternative solution to the problematic of access to financial products of the classical banking system. It offers a possibility of diversification and socialization of risks while allowing an objective and more efficient allocation of financial resources without major constraint. Its activities are not illegal and it completes the classical financial banking system. Its usefulness is well established, but the need for its supervision remains an essential concern for economic agents. If shadow banking system is not regulated, it can bring about, in the market of capitals, toxic financial titles which are created by less credible financial entities. This can cause a disturbance of the economy and a deregulation of the global financial system. Like any other financial system, shadow banking has some risks which it spreads in the economic system if an adequate regulation, with well- established norms, does not govern its implementation.},
year = {2020}
}
TY - JOUR T1 - Criticality Analysis of Shadow Banking System Deregulation AU - Mamadou Mbaye Y1 - 2020/08/10 PY - 2020 N1 - https://doi.org/10.11648/j.eco.20200903.12 DO - 10.11648/j.eco.20200903.12 T2 - Economics JF - Economics JO - Economics SP - 60 EP - 65 PB - Science Publishing Group SN - 2376-6603 UR - https://doi.org/10.11648/j.eco.20200903.12 AB - The objective of our article is to analyze the criticality of the deregulation of shadow banking system in different economic environments. It is defined like a financial intermediation system carried out outside the framework of classical banking and financial activities. Shadow banking system shows a lot of advantages in terms of the financing of the economy. It is an alternative for the investors and the economic agents. So it constitutes an alternative solution to the problematic of access to financial products of the classical banking system. It offers a possibility of diversification and socialization of risks while allowing an objective and more efficient allocation of financial resources without major constraint. Its activities are not illegal and it completes the classical financial banking system. Its usefulness is well established, but the need for its supervision remains an essential concern for economic agents. If shadow banking system is not regulated, it can bring about, in the market of capitals, toxic financial titles which are created by less credible financial entities. This can cause a disturbance of the economy and a deregulation of the global financial system. Like any other financial system, shadow banking has some risks which it spreads in the economic system if an adequate regulation, with well- established norms, does not govern its implementation. VL - 9 IS - 3 ER -
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