Shadow Banking and Financial Risk in Emerging and Developing Markets The Growth and Development of Non-Bank Financial Intermediation

This book discusses non-bank financial intermediation as an alternative or complement to formal banking. With a focus on emerging and developing economies, which face far greater consequences of high risk taking and withdrawal of credit from their financial systems, the book starts with an overview of non-bank financial intermediation, including shadow banking activities, instruments and functions. It covers the main types of activities classified under non-bank financial intermediation and the different players in the non-bank financial system. The interconnectedness between shadow banking and formal banks and their consequential risks will be analysed. Furthermore, the book analyses recent data on shadow banking with a view to estimate the extent of riskiness in shadow banking activities. Analysis of risk spill overs between the formal banking system and shadow banks will be conducted and contribution of shadow banking to systemic risk metrics will also be analysed.

This book discusses non-bank financial intermediation as an alternative or complement to formal banking. With a focus on emerging and developing economies, which face far greater consequences of high risk taking and withdrawal of credit from their financial systems, the book starts with an overview of non-bank financial intermediation, including shadow banking activities, instruments and functions. It covers the main types of activities classified under non-bank financial intermediation and the different players in the non-bank financial system. The interconnectedness between shadow banking and formal banks and their consequential risks will be analysed. Furthermore, the book analyses recent data on shadow banking with a view to estimate the extent of riskiness in shadow banking activities. Analysis of risk spillovers between the formal banking system and shadow banks will be conducted and contribution of shadow banking to systemic risk metrics is also presented.

Chapter 1: Non-Bank Financial Intermediation: A background.- Chapter 2: Growth and Development of non-bank financial intermediation in emerging and developing economies.- Chapter 3: Measurement of non-bank financial intermediation.- Chapter 4: The impact of non-bank financial intermediation on bank profitability: Evidence from Emerging and Developing economies.- Chapter 5: Exploring SADC regional economic integration using the lenses of non-bank financial intermediation vs capital market development.- Chapter 6: Measuring risk in non-bank financial intermediation.- Chapter 7: Risk management in non-bank financial intermediation and its impact on systemic risk.- Chapter 8: Assessing global spill overs in shadow banking: the case of BRICS economies.- Chapter 9: Regulation of non-bank financial intermediation in emerging economies.- Chapter 10: Non-bank financial intermediation: financing opportunities for the informal economy in developing economies.- Chapter 11: The impact of financial technology and cyber-risk on non-bank financial intermediation.- Chapter 12: Conclusion.

Sheunesu Zhou is an Associate Professorin the Department of Economics at the University of Zululand, South Africa where he teaches both undergraduate and postgraduate, economics and finance courses. He has written a number of original research articles on the topic of shadow banking under the broad theme of non-bank financial intermediation and financial development. Prof Zhou has wider research interests in financial economics and macroeconomic policy formulation, and the application of econometric methods in economic policy analysis.