Shedding a clearer light on financial stability risks in the shadow banking system

Since the credit crisis, the funding of economic activities has been shifting 9 from banks towards less regulated entities outside the banking system or, in other words, to the shadow banking system. This shift relates to the stricter regulation of banks, which has resulted inter alia in the creation of alternative credit platforms such as crowd finance and credit unions. The low interest-rate environment has also played a significant role in this process. This has spurred a search for yield, with one of the results of this being a rapid growth in funds investing in debt securities.