This research study aims at to discover the effects of evolving concept of the shadow banking system and particularly assessing how the major elements of shadow banking system such as Money Market Mutual Funds, Repurchase Agreements and Asset-Backed Commercial Papers would move to financial market distress. The Shadow banking have major contribution towards the great US financial crisis of 2007-2008 in the form of structural securities of SDOs due to lack of effective regulatory system and If the regulatory mechanism levied by Securities and Exchange Commissions and a stable monetary and fiscal strategies of central bank would be properly practiced, it can provide assistance to overcome the distressing situation of financial market. OLS method applied for analysis and two sample data sets are collected, firstly, for shadow banking system itself taken 29 countries as from the Global Financial Report (2017) and secondly, the outstanding level of time series data of money market mutual funds, repurchase agreements and asset-backed commercial papers in the context of US financial market through secondary data sources. The outcomes appeared as significant that are associated with our arguments given in the literature that through moderating role of regulations risk of financial market distress can be mitigate and the study hypothesis are verified. Hence, research framework proved statistically and a strong regulatory system can reduce the misbalancing situation of financial markets.
| Published in | Journal of Business and Economic Development (Volume 7, Issue 3) |
| DOI | 10.11648/j.jbed.20220703.12 |
| Page(s) | 71-85 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Repurchase Agreement, Shadow Banking System, Shadow Banking Regulations
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APA Style
Muhammad Adnan Khan, Sabahat Rana. (2022). The Impact of Shadow Banking System on Financial Market Distress; Moderating Role of Regulations. Journal of Business and Economic Development, 7(3), 71-85. https://doi.org/10.11648/j.jbed.20220703.12
ACS Style
Muhammad Adnan Khan; Sabahat Rana. The Impact of Shadow Banking System on Financial Market Distress; Moderating Role of Regulations. J. Bus. Econ. Dev. 2022, 7(3), 71-85. doi: 10.11648/j.jbed.20220703.12
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Download@article{10.11648/j.jbed.20220703.12,
author = {Muhammad Adnan Khan and Sabahat Rana},
title = {The Impact of Shadow Banking System on Financial Market Distress; Moderating Role of Regulations},
journal = {Journal of Business and Economic Development},
volume = {7},
number = {3},
pages = {71-85},
doi = {10.11648/j.jbed.20220703.12},
url = {https://doi.org/10.11648/j.jbed.20220703.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20220703.12},
abstract = {This research study aims at to discover the effects of evolving concept of the shadow banking system and particularly assessing how the major elements of shadow banking system such as Money Market Mutual Funds, Repurchase Agreements and Asset-Backed Commercial Papers would move to financial market distress. The Shadow banking have major contribution towards the great US financial crisis of 2007-2008 in the form of structural securities of SDOs due to lack of effective regulatory system and If the regulatory mechanism levied by Securities and Exchange Commissions and a stable monetary and fiscal strategies of central bank would be properly practiced, it can provide assistance to overcome the distressing situation of financial market. OLS method applied for analysis and two sample data sets are collected, firstly, for shadow banking system itself taken 29 countries as from the Global Financial Report (2017) and secondly, the outstanding level of time series data of money market mutual funds, repurchase agreements and asset-backed commercial papers in the context of US financial market through secondary data sources. The outcomes appeared as significant that are associated with our arguments given in the literature that through moderating role of regulations risk of financial market distress can be mitigate and the study hypothesis are verified. Hence, research framework proved statistically and a strong regulatory system can reduce the misbalancing situation of financial markets.},
year = {2022}
}
TY - JOUR T1 - The Impact of Shadow Banking System on Financial Market Distress; Moderating Role of Regulations AU - Muhammad Adnan Khan AU - Sabahat Rana Y1 - 2022/08/24 PY - 2022 N1 - https://doi.org/10.11648/j.jbed.20220703.12 DO - 10.11648/j.jbed.20220703.12 T2 - Journal of Business and Economic Development JF - Journal of Business and Economic Development JO - Journal of Business and Economic Development SP - 71 EP - 85 PB - Science Publishing Group SN - 2637-3874 UR - https://doi.org/10.11648/j.jbed.20220703.12 AB - This research study aims at to discover the effects of evolving concept of the shadow banking system and particularly assessing how the major elements of shadow banking system such as Money Market Mutual Funds, Repurchase Agreements and Asset-Backed Commercial Papers would move to financial market distress. The Shadow banking have major contribution towards the great US financial crisis of 2007-2008 in the form of structural securities of SDOs due to lack of effective regulatory system and If the regulatory mechanism levied by Securities and Exchange Commissions and a stable monetary and fiscal strategies of central bank would be properly practiced, it can provide assistance to overcome the distressing situation of financial market. OLS method applied for analysis and two sample data sets are collected, firstly, for shadow banking system itself taken 29 countries as from the Global Financial Report (2017) and secondly, the outstanding level of time series data of money market mutual funds, repurchase agreements and asset-backed commercial papers in the context of US financial market through secondary data sources. The outcomes appeared as significant that are associated with our arguments given in the literature that through moderating role of regulations risk of financial market distress can be mitigate and the study hypothesis are verified. Hence, research framework proved statistically and a strong regulatory system can reduce the misbalancing situation of financial markets. VL - 7 IS - 3 ER -
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