Description
The book shows the fundaments of the shadow banking system and its entities, operations and risks. Focusing on the regulatory aspects, it provides an original view that is able to demonstrate that the lack of supervision is a market failure. Valerio Lemma PART I: GENERAL OBSERVATIONS 1.1 The Identification Of The Phenomenon 1.2 The Traditional Definitions Of The Shadow Banking System: The Guidelines Of The Financial Stability Board And The Statement Of The G20 1.3. The Directions Of Certain Central Banks 1.4. The Routes Of European Institutions 1.5 The Path Of Emerging Countries 1.6 The Interpretations Of The Phenomenon 1.7. The Different Outcomes Of The Monetary And Supervisory Perspectives 1.8 The Boundaries Of The Shadow Banking System: Money Laundering, Tax Evasion And Other Forms Of The ‘Black Market.’ PART II: THE SHADOW BANKING SYSTEM AS AN ALTERNATIVE SOURCE OF LIQUIDITY 2.1. The Economic Determinants Of The Shadow Banking System 2.2. Information Asymmetries 2.3. Opacity, Pro-Cyclicality And System Instability 2.4. Methods For Classification Of The Phenomenon 2.5. Is This Economic Freedom Or Escape From Regulation? 2.6. The Global Nature And The Riskiness Of The Phenomenon 2.7. New Freedoms And Their Problematic Nature PART III: SHADOW BANKING ENTITIES 3.1 Special Purpose Vehicles 3.2 Shadow Banks 3.3. Other Shadow Banking Entities 3.4. The Shadow Funds 3.5. The Particular Role Of Money Market Funds PART IV: SHADOW BUSINESSES OF BANKS, INSURANCE COMPANIES AND PENSION FUNDS 4.1. Multi-Phasic Nature Of The Shadow Banking System And Plurality Of Traditional Operators 4.2. The Role Of Banks In The Shadow Banking System 4.3. The Dysfunctions Of Internal Controls And Of The Weaknesses Of Other Safeguards 4.4. The Action Of The Insurance Companies 4.5. The Involvement Of Pension Funds PART V: SHADOW BANKING OPERATIONS 5.1. Shadow Credit Intermediation Process 5.2. An Undetermined (In The Contents) And Unconfined (Within The Boundaries) Reality 5.3. The Operations Of The Credit Transformation 5.4. The New Securitization Techniques 5.5. Effects On The Maturities Of The Operations And On The Levels Of Financial Leverage 5.6. Ratings (In The Shadows) PART VI: NON STANDARD OPERATIONS IN THE SHADOW BANKING SYSTEM 6.1. The Use Of Securities Lending And Borrowing And Repurchase Agreements 6.2. The Offering Of The Asset-Backed Commercial Paper, Asset-Backed Securities And Collateralized Debt Obligations 6.3. Peculiarities Of Derivatives 6.4. The Shadow Banking Operations Of Sovereign States 6.5. The Use Of Derivatives (To Face The Crisis) By Sovereign States 6.6. The Shadow Banking Operations Of The Credit Institutions PART VII: SHADOW BANKING RISKS AND KEY VULNERABILITIES 7.1. Areas Of Risk In The Shadow Banking System 7.2. Risk Factors 7.3. Operators And Policies Of Risk Management 7.4 Operational Freedom Inside The Shadow Banking System 7.5. The Risks Of Organizations 7.6. The Prospective Regulation Of The Operations 7.7. The Risks Of Governance 7.8 The Impact Of European Regulation On The Management 7.9. The Risks Of The Entities ‘Too Big To Fail’
