About the Shadow Banking Market
A Shadow banking system is a network of financial institutions comprising non-depository banks like the structured investment vehicles, hedge funds, investment banks, and money market funds. Based on the size and scale of operations these financial intermediaries are classified as small to big insurance brokerage firms or financial institutions. The services offered by financial intermediaries include commercial banking, asset management, and investment banking. The members of the non-bank financial intermediary are not subjected to regulatory oversight. The working style and regulations of shadow banks are different from those of regular banks.
Technavio’s analysts forecast the global shadow banking market to grow at a CAGR of 11.28% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global shadow banking market for 2016-2020. To calculate the market size, the report considers the revenue generated from the shadow banking market reported from the Americas, APAC, and EMEA.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Shadow Banking Market 2016-2020
Technavio recognizes the following companies as the key players in the global shadow banking market: Bank of America Merrill Lynch, Barclays, HSBC, Credit Suisse, and Citibank.
Other Prominent Vendors in the market are: Deutsche Bank, Goldman Sachs, and Morgan Stanley.
Commenting on the report, an analyst from Technavio’s team said: “A trend which is helping boost market growth is the demand for crowd funding. Crowdfunding and peer-to-peer lending are emerging trends that collectively generate $7 billion more in terms of revenue compared to that of the shadow banking market. The shadow banking market has a huge growth potential, especially in the UK and the US, because it supports the funding of micro, small, and medium enterprises. The regulators in these regions are supporting the crowdfunding platforms to get money transfer licenses, which will help customers grow. Niche segments like gaming, education, music, non-profits and charitable organizations, research, and local projects are forming their own platforms to provide better services thereby increasing the goodwill of the firms. This will help companies to use crowdfunding to reduce the cost and claims.”
According to the report, a key growth driver is the ability to get quicker access to credit. The shadow banking institutions provide credit to the marginalized borrowers, including small and medium scale industries that are unable to avail huge funds from traditional banks. This is because the small and the medium enterprises lack high quality collateral, have long credit histories, and are associated with higher risks. Therefore, these companies often opt for shadow banks to meet their short-term funds. The traditional banking institutions have failed to address the specific needs of the potential clients and this has brought in huge funding gap between the large corporate and the small and medium enterprises.
Further, the report states that one challenge that could restrict market growth is the lack of liquidity backstop from central banks.
Bank of America Merrill Lynch, Barclays, HSBC, Credit Suisse, Citibank, Deutsche Bank, Goldman Sachs, and Morgan Stanley.
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