Market Overview:
The global shadow banking market is expected to grow at a CAGR of 9.5% from 2018 to 2030. The market growth is attributed to the increasing demand for liquidity and risk management solutions by financial institutions, SMEs, and large enterprises. In addition, the growing popularity of securitization vehicles, money market funds, markets for repurchase agreements (repo), investment banks, mortgage companies, and other entities in the shadow banking system is also contributing to the growth of this market. However, stringent regulations and lack of standardization are restraining the growth of this market. The shadow banking system can be classified into five major segments: securitization vehicles (asset-backed securities [ABS], collateralized debt obligations [CDO], collateralized loan obligations [CLO], etc.), money market funds (MMFs), markets for repurchase agreements (repo), investment banks (IBs), and mortgage companies. Among these segments, securitization vehicles held the dominant share in 2017 owing to their ability to provide liquidity solutions as well as risk management solutions across different geographies.
Product Definition:
Shadow banking is a term used to describe the activities of financial institutions (mainly banks) that operate outside the regular banking system. These institutions include investment banks, hedge funds, and money market mutual funds.
Shadow banking has become an important part of the global financial system, providing credit to businesses and consumers. However, it also played a role in the 2008-09 financial crisis.
Securitization Vehicles:
Security Vehicles (SV) are a new asset class, which emerged in the wake of the global financial crisis. They possess high cash value and low liquid value, owing to which they serve as an ideal vehicle for investors seeking yield with minimal risk. SV is expected to gain prominence over the forecast period owing to its usage in various shadow banking activities such as structured investment vehicles (SIV), conduits, and other special purpose vehicles (SPV).
Money Market Funds:
The money market funds are the most liquid investment vehicles that can be used to raise short-term capital. They are also known as checking accounts for banks, cash management accounts or high-yield investment programs. These funds help in managing a large amount of cash through various financial instruments such as interest-bearing deposits with central bank, repos at commercial bank and other money market instruments (MMI) issued by private banks.
Application Insights:
The market is segmented by application into Small and Medium-sized Enterprises (SMEs), Large enterprises, and others. The SMEs segment held the largest share of the global shadow banking market in 2017. This can be attributed to factors such as high exposure of SMEs to bank loans, which are increasingly being viewed as a riskier asset due to increasing volatility in interest rates and exchange rates coupled with an increase in global uncertainty regarding economic growth post-crisis of 2008.
Large enterprises are expected to emerge as one of the prominent segments over the forecast period owing to their extensive use for funding activities such as mergers & acquisitions, capital investments, dividend payments etc., through external sources other than banks including commercial paper markets or bond markets.
Regional Analysis:
Asia Pacific is estimated to be the fastest-growing regional market over the forecast period. The growth of shadow banking in Asia Pacific can be attributed to various macroeconomic factors, such as low interest rates, high levels of household debt and increasing government support for financial institutions. In India, the government has encouraged banks to increase their lending activities by cutting down their profit margins. This move was taken up by other governments across emerging economies with an aim towards reducing funding costs for SMEs and encouraging more investment in these sectors.
The Middle East & Africa is also expected to witness significant growth over the coming years owing to increased adoption of shadow banking products from both retail and institutional investors' standpoint; rising oil prices; improving economic conditions in countries including Saudi Arabia, UAE & Egypt;.
Growth Factors:
- Increasing demand for credit and liquidity: The global shadow banking system has continued to grow in size and importance, driven by the increasing demand for credit and liquidity from borrowers, investors, and other market participants.
- Regulatory reforms: Regulatory reforms have been a key driver of growth in the shadow banking system, as they have encouraged banks to divest certain activities into non-bank entities.
- Innovation and technological advancements: Technological advancements have allowed for the development of new products and services within the shadow banking system, which has helped to fuel its growth.
- Deregulation: Deregulation of financial markets has led to an increase in activity within the shadow banking system as investors search for higher yields outside traditional financial institutions.
Scope Of The Report
Report Attributes
Report Details
Report Title
Shadow Banking Market Research Report
By Type
Securitization Vehicles, Money Market Funds, Markets for Repurchase Agreements, Investment Banks, Mortgage Companies, Other
By Application
SMEs, Large Enterprises
By Companies
Bank of America Merrill Lynch, Barclays, HSBC, Credit Suisse, Citibank, Deutsche Bank, Goldman Sachs, Morgan Stanley
Regions Covered
North America, Europe, APAC, Latin America, MEA
Base Year
2021
Historical Year
2019 to 2020 (Data from 2010 can be provided as per availability)
Forecast Year
2030
Number of Pages
154
Number of Tables & Figures
108
Customization Available
Yes, the report can be customized as per your need.
Global Shadow Banking Market Report Segments:
The global Shadow Banking market is segmented on the basis of:
Types
Securitization Vehicles, Money Market Funds, Markets for Repurchase Agreements, Investment Banks, Mortgage Companies, Other
The product segment provides information about the market share of each product and the respective CAGR during the forecast period. It lays out information about the product pricing parameters, trends, and profits that provides in-depth insights of the market. Furthermore, it discusses latest product developments & innovation in the market.
Applications
SMEs, Large Enterprises
The application segment fragments various applications of the product and provides information on the market share and growth rate of each application segment. It discusses the potential future applications of the products and driving and restraining factors of each application segment.
Some of the companies that are profiled in this report are:
- Bank of America Merrill Lynch
- Barclays
- HSBC
- Credit Suisse
- Citibank
- Deutsche Bank
- Goldman Sachs
- Morgan Stanley
Highlights of The Shadow Banking Market Report:
- The market structure and projections for the coming years.
- Drivers, restraints, opportunities, and current trends of market.
- Historical data and forecast.
- Estimations for the forecast period 2030.
- Developments and trends in the market.
- By Type:
- Securitization Vehicles
- Money Market Funds
- Markets for Repurchase Agreements
- Investment Banks
- Mortgage Companies
- Other
- By Application:
- SMEs
- Large Enterprises
- Market scenario by region, sub-region, and country.
- Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
- Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
- Government Policies, Macro & Micro economic factors are also included in the report.
We have studied the Shadow Banking Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2030.
Regional Analysis
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- Latin America
Note: A country of choice can be added in the report at no extra cost. If more than one country needs to be added, the research quote will vary accordingly.
The geographical analysis part of the report provides information about the product sales in terms of volume and revenue in regions. It lays out potential opportunities for the new entrants, emerging players, and major players in the region. The regional analysis is done after considering the socio-economic factors and government regulations of the countries in the regions.
How you may use our products:
- Correctly Positioning New Products
- Market Entry Strategies
- Business Expansion Strategies
- Consumer Insights
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- Product & Brand Management
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8 Reasons to Buy This Report
- Includes a Chapter on the Impact of COVID-19 Pandemic On the Market
- Report Prepared After Conducting Interviews with Industry Experts & Top Designates of the Companies in the Market
- Implemented Robust Methodology to Prepare the Report
- Includes Graphs, Statistics, Flowcharts, and Infographics to Save Time
- Industry Growth Insights Provides 24/5 Assistance Regarding the Doubts in the Report
- Provides Information About the Top-winning Strategies Implemented by Industry Players.
- In-depth Insights On the Market Drivers, Restraints, Opportunities, and Threats
- Customization of the Report Available
Frequently Asked Questions?
Shadow banking is a term used to describe the activities of financial institutions that are not subject to traditional bank regulation. These institutions may include hedge funds, private equity firms, and other types of investment companies.
Some of the key players operating in the shadow banking market are Bank of America Merrill Lynch, Barclays, HSBC, Credit Suisse, Citibank, Deutsche Bank, Goldman Sachs, Morgan Stanley.
The shadow banking market is expected to grow at a compound annual growth rate of 9.5%.
Chapter 1 Executive Summary
Chapter 2 Assumptions and Acronyms Used
Chapter 3 Research Methodology
Chapter 4 Shadow Banking Market Overview
4.1 Introduction
4.1.1 Market Taxonomy
4.1.2 Market Definition
4.1.3 Macro-Economic Factors Impacting the Market Growth
4.2 Shadow Banking Market Dynamics
4.2.1 Market Drivers
4.2.2 Market Restraints
4.2.3 Market Opportunity
4.3 Shadow Banking Market - Supply Chain Analysis
4.3.1 List of Key Suppliers
4.3.2 List of Key Distributors
4.3.3 List of Key Consumers
4.4 Key Forces Shaping the Shadow Banking Market
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of Substitution
4.4.4 Threat of New Entrants
4.4.5 Competitive Rivalry
4.5 Global Shadow Banking Market Size & Forecast, 2020-2028
4.5.1 Shadow Banking Market Size and Y-o-Y Growth
4.5.2 Shadow Banking Market Absolute $ Opportunity
Chapter 5 Global Market Analysis and Forecast by Type
5.1 Introduction
5.1.1 Key Market Trends & Growth Opportunities by Type
5.1.2 Basis Point Share (BPS) Analysis by Type
5.1.3 Absolute $ Opportunity Assessment by Type
5.2 Market Size Forecast by Type
5.2.1 Securitization Vehicles
5.2.2 Money Market Funds
5.2.3 Markets for Repurchase Agreements
5.2.4 Investment Banks
5.2.5 Mortgage Companies
5.2.6 Other
5.3 Market Attractiveness Analysis by Type
Chapter 6 Global Market Analysis and Forecast by Applications
6.1 Introduction
6.1.1 Key Market Trends & Growth Opportunities by Applications
6.1.2 Basis Point Share (BPS) Analysis by Applications
6.1.3 Absolute $ Opportunity Assessment by Applications
6.2 Market Size Forecast by Applications
6.2.1 SMEs
6.2.2 Large Enterprises
6.3 Market Attractiveness Analysis by Applications
Chapter 7 Global Shadow Banking Market Analysis and Forecast by Region
7.1 Introduction
7.1.1 Key Market Trends & Growth Opportunities by Region
7.1.2 Basis Point Share (BPS) Analysis by Region
7.1.3 Absolute $ Opportunity Assessment by Region
7.2 Shadow Banking Market Size Forecast by Region
7.2.1 North America
7.2.2 Europe
7.2.3 Asia Pacific
7.2.4 Latin America
7.2.5 Middle East & Africa (MEA)
7.3 Market Attractiveness Analysis by Region
Chapter 8 Coronavirus Disease (COVID-19) Impact
8.1 Introduction
8.2 Current & Future Impact Analysis
8.3 Economic Impact Analysis
8.4 Government Policies
8.5 Investment Scenario
Chapter 9 North America Analysis and Forecast
9.1 Introduction
9.2 North America Market Size Forecast by Country
9.2.1 U.S.
9.2.2 Canada
9.3 Basis Point Share (BPS) Analysis by Country
9.4 Absolute $ Opportunity Assessment by Country
9.5 Market Attractiveness Analysis by Country
9.6 North America Market Size Forecast by Type
9.6.1 Securitization Vehicles
9.6.2 Money Market Funds
9.6.3 Markets for Repurchase Agreements
9.6.4 Investment Banks
9.6.5 Mortgage Companies
9.6.6 Other
9.7 Basis Point Share (BPS) Analysis by Type
9.8 Absolute $ Opportunity Assessment by Type
9.9 Market Attractiveness Analysis by Type
9.10 North America Market Size Forecast by Applications
9.10.1 SMEs
9.10.2 Large Enterprises
9.11 Basis Point Share (BPS) Analysis by Applications
9.12 Absolute $ Opportunity Assessment by Applications
9.13 Market Attractiveness Analysis by Applications
Chapter 10 Europe Analysis and Forecast
10.1 Introduction
10.2 Europe Market Size Forecast by Country
10.2.1 Germany
10.2.2 France
10.2.3 Italy
10.2.4 U.K.
10.2.5 Spain
10.2.6 Russia
10.2.7 Rest of Europe
10.3 Basis Point Share (BPS) Analysis by Country
10.4 Absolute $ Opportunity Assessment by Country
10.5 Market Attractiveness Analysis by Country
10.6 Europe Market Size Forecast by Type
10.6.1 Securitization Vehicles
10.6.2 Money Market Funds
10.6.3 Markets for Repurchase Agreements
10.6.4 Investment Banks
10.6.5 Mortgage Companies
10.6.6 Other
10.7 Basis Point Share (BPS) Analysis by Type
10.8 Absolute $ Opportunity Assessment by Type
10.9 Market Attractiveness Analysis by Type
10.10 Europe Market Size Forecast by Applications
10.10.1 SMEs
10.10.2 Large Enterprises
10.11 Basis Point Share (BPS) Analysis by Applications
10.12 Absolute $ Opportunity Assessment by Applications
10.13 Market Attractiveness Analysis by Applications
Chapter 11 Asia Pacific Analysis and Forecast
11.1 Introduction
11.2 Asia Pacific Market Size Forecast by Country
11.2.1 China
11.2.2 Japan
11.2.3 South Korea
11.2.4 India
11.2.5 Australia
11.2.6 South East Asia (SEA)
11.2.7 Rest of Asia Pacific (APAC)
11.3 Basis Point Share (BPS) Analysis by Country
11.4 Absolute $ Opportunity Assessment by Country
11.5 Market Attractiveness Analysis by Country
11.6 Asia Pacific Market Size Forecast by Type
11.6.1 Securitization Vehicles
11.6.2 Money Market Funds
11.6.3 Markets for Repurchase Agreements
11.6.4 Investment Banks
11.6.5 Mortgage Companies
11.6.6 Other
11.7 Basis Point Share (BPS) Analysis by Type
11.8 Absolute $ Opportunity Assessment by Type
11.9 Market Attractiveness Analysis by Type
11.10 Asia Pacific Market Size Forecast by Applications
11.10.1 SMEs
11.10.2 Large Enterprises
11.11 Basis Point Share (BPS) Analysis by Applications
11.12 Absolute $ Opportunity Assessment by Applications
11.13 Market Attractiveness Analysis by Applications
Chapter 12 Latin America Analysis and Forecast
12.1 Introduction
12.2 Latin America Market Size Forecast by Country
12.2.1 Brazil
12.2.2 Mexico
12.2.3 Rest of Latin America (LATAM)
12.3 Basis Point Share (BPS) Analysis by Country
12.4 Absolute $ Opportunity Assessment by Country
12.5 Market Attractiveness Analysis by Country
12.6 Latin America Market Size Forecast by Type
12.6.1 Securitization Vehicles
12.6.2 Money Market Funds
12.6.3 Markets for Repurchase Agreements
12.6.4 Investment Banks
12.6.5 Mortgage Companies
12.6.6 Other
12.7 Basis Point Share (BPS) Analysis by Type
12.8 Absolute $ Opportunity Assessment by Type
12.9 Market Attractiveness Analysis by Type
12.10 Latin America Market Size Forecast by Applications
12.10.1 SMEs
12.10.2 Large Enterprises
12.11 Basis Point Share (BPS) Analysis by Applications
12.12 Absolute $ Opportunity Assessment by Applications
12.13 Market Attractiveness Analysis by Applications
Chapter 13 Middle East & Africa (MEA) Analysis and Forecast
13.1 Introduction
13.2 Middle East & Africa (MEA) Market Size Forecast by Country
13.2.1 Saudi Arabia
13.2.2 South Africa
13.2.3 UAE
13.2.4 Rest of Middle East & Africa (MEA)
13.3 Basis Point Share (BPS) Analysis by Country
13.4 Absolute $ Opportunity Assessment by Country
13.5 Market Attractiveness Analysis by Country
13.6 Middle East & Africa (MEA) Market Size Forecast by Type
13.6.1 Securitization Vehicles
13.6.2 Money Market Funds
13.6.3 Markets for Repurchase Agreements
13.6.4 Investment Banks
13.6.5 Mortgage Companies
13.6.6 Other
13.7 Basis Point Share (BPS) Analysis by Type
13.8 Absolute $ Opportunity Assessment by Type
13.9 Market Attractiveness Analysis by Type
13.10 Middle East & Africa (MEA) Market Size Forecast by Applications
13.10.1 SMEs
13.10.2 Large Enterprises
13.11 Basis Point Share (BPS) Analysis by Applications
13.12 Absolute $ Opportunity Assessment by Applications
13.13 Market Attractiveness Analysis by Applications
Chapter 14 Competition Landscape
14.1 Shadow Banking Market: Competitive Dashboard
14.2 Global Shadow Banking Market: Market Share Analysis, 2019
14.3 Company Profiles (Details – Overview, Financials, Developments, Strategy)
14.3.1 Bank of America Merrill Lynch
14.3.2 Barclays
14.3.3 HSBC
14.3.4 Credit Suisse
14.3.5 Citibank
14.3.6 Deutsche Bank
14.3.7 Goldman Sachs
14.3.8 Morgan Stanley
