Stijn Claessens, Zoltan Pozsar, Lev Ratnovski, Manmohan Singh, Saturday, January 12, 2013 - 00:00

The risks associated with shadow banking are at the forefront of the regulatory debate. Yet, this column argues that there is as yet no established analytical approach to shadow banking. This means that policy priorities are not clearly motivated. But if we analyse securitisation and collateral intermediation – the two shadow banking functions most important for financial stability – a solid framework that includes existing policy recommendations, as well as some alternative ones, begins to emerge.

CEPR Policy Research