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Table 5 Key literature on SB and systemic risk

From: Shadow banking: a bibliometric and content analysis




Main arguments/findings

Pellegrini et al. (2017)

Finance Research Letters


MMFs listed in the UK have decreased systemic risk during GFC. Average systemic risk is increased by liquidity mismatch over the whole study period, but the risk only decreases during GFC

Bengtsson (2016)

Journal of Financial Regulation and Compliance


From the perspective of systemic risk, hedge funds and conventional investment funds have several commonalities. Investment funds’ ability to substitute traditional banks’ maturity transformations may be threatened by the instability in funding profiles of the investment funds

Wymeersch (2017)

EBI Working Paper Series


Banks have been bound to adapt the behaviors, structure, and balance sheet to the risk of participating in the shadow banking market

Hsu et al. (2013)

CITYPERC Working Paper Series


Several factors, including herd behavior, are creating systemic risk in the European markets. Risk dispersion across the underdeveloped segment of the shadow banking sector has posed China some concentrated risks that have no contribution to the systemic risk

Tian et al. (2016)

Emerging Markets Finance and Trade


Over the 2007–2012 period, trust companies posed the most financial

Instability in China and this adverse effect caused the commercial banks the most

Wei (2015)

Asia Pacific Law Review


Regulators and the market players object to shadow banks’ existence as it generates financial risks. However, commercial banks have enjoyed a large amount of profit generated by the WMPs. So, the Chinese policymakers can formulate a multi-tiered market for loans and an interest rate environment to cure WMPs’ systemic risk

Hsu et al. (2014)

PERI Working Paper Series


Trust companies pose the most systemic risk in the Chinese shadow banking system. The systemic risk posed by banks, insurance companies, and securities companies had insignificant differences. Banks absorbed the most systemic risks, about 85%, in the shadow banking system