Regulation of shadow banks

The shadow banking sector is an ill-defined financial segment that expands and contracts credit outside the regulatory perimeter. It was critical in the buildup and demise of the credit boom, and has received much regulatory attention ever since.

Certain non-bank financial intermediaries are considered to be shadow banks for the purpose of prudential regulation. While a narrow definition would be based on the degree to which intermediaries replicate a mismatched funding and lending structure, a broader definition embraces all large intermediaries that because of their scale, role, funding or investment strategy may contribute to systemic risk.

This advanced course focuses on financial and prudential aspects, with some attention to its legal underpinnings. It is taught by experts with significant policy experience or legal insight on this high specialized theme.