Sizing the european shadow banking system: a new methodology.

Content Provider	CiteSeerX
Author	Tyson, Judith Shabani, Mimoza
Abstract	One of the critical unanswered questions relating to the shadow-banking system has been to quantify its scale in an industry where entities, by design, are opaque and often outside of regulated and publically shared frameworks. However almost all shadow banking entities, including hedge funds, private equity funds and special purpose vehicles (“SPVs”), interact with the financial markets via regulated investment banks. For example, many SPVs are in fact originated as part of investment banking business and hedge funds typically transact in financial markets exclusively via the “prime brokerage ” division of investment banks. This interface with the regulated banking environment combines with the typical practise by investment banks of equalizing compensation (Including bonus) ratios to revenues globally which then allows identification of the implied difference in revenues and hence assets that represents the shadow banking system. The paper will present for critique the results of this methodology to estimate the UK shadow banking system including European business managed from the UK. The estimate will imply
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Access Restriction	Open
Subject Keyword	New Methodology European Shadow Banking System Financial Market Investment Bank Hedge Fund Prime Brokerage Division Shadow Banking System Shadow-banking System European Business Including Bonus Private Equity Fund Regulated Banking Environment Combine Implied Difference Investment Banking Business Many Spvs Regulated Investment Bank Critical Unanswered Question Special Purpose Vehicle Hence Asset Uk Shadow Banking System Shadow Banking Entity Typical Practise
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