The importance of shadow banking sector entities for population affected by credit exclusion
Keywordsshadow banking, financial exclusion, social lending
The entities included in shadow banking sector, referred to as alternative financial services providers, render services similar to banking ones. They are neither covered by banking law regulations nor subject to state supervision, but create a parallel banking system. The institutions attract clients originating mainly from the group of financially excluded individuals, rejected by banks as the result of their insufficient creditworthiness, or negative history of previously contracted debts. The objective of hereby paper is to identify advantages and threats resulting from activities performed by entities functioning in the shadow banking sector with reference to people suffering credit exclusion. Among advantages the following have to be listed: the provision of financing sources for consumer expenditure which facilitates household finances management; entrepreneurship promotion among the unemployed or the deprived of an opportunity to start their own business. Among threats the following should be emphasized: the danger of getting into the spiral of debt; inability to take advantage of consumer bankruptcy procedure; the threat of advancing poverty in such households which do not manage to have proper control of personal finance owing to poor knowledge and the absence of financial skills.
Adrian T., Shin H. S. (2009), The Shadow Banking System: Implications for Financial Regulation, Federal Reserve Bank of New York Staff Report no. 382, http://dx.doi.org/10.2139%2Fssrn.1441324.
Advancing Responsible Finance for Greater Development Impact (2011), Responsible Finance Forum, Available on the website http://www.ifc.org/ (access: 02.10.2013).
Anderloni L. (2008), Financial services provision and prevention of financial exclusion, European Commission, http://ec.europa.eu/social/main.jsp?langId=en&catId=22 (27.09.2013).
Białowolski P. (2012), Rynek firm pożyczkowych w Polsce. Konferencja Przedsiębiorstw Finansowych w Polsce, Warszawa, Available on the website http://alebank.pl/ (access: 15.10.2013).
Czapiński J., Panek T. (2012), Diagnoza społeczna 2011. Warunki i jakość życia Polaków, Ministerstwo Pracy i Polityki Społecznej. Warszawa.
Dowla A., Barua D. (2006), The Poor Always Pay Back. The Grameen II Story, Kumarian Press, Bloomfield.
Gennaioli N., Shleifer A., Vishny R. (2013), A Model of Shadow Banking, „Journal of Finance”, vol. 68, Issue 4, http://dx.doi.org/10.1111%2Fjofi.12031.
Gorton G., Metrick A. (2010), Regulating the Shadow Banking System, “Brookings Paper on Economic Activity”, vol. 41, Issue 2, http://dx.doi.org/10.1353%2Feca.2010.0016.
Gorton G., Metrick A. (2012), Securitized Banking and the Run on Repo, „Journal of Financial Economics”, vol. 104, Issue 3, http://dx.doi.org/10.1016%2Fj.jfineco.2011.03.016.
Iwaisako T. (2010), Global Financial Crisis, Hedge Funds and the Shadow Banking System, “Public Policy Review”, vol. 6, no. 3.
Janikowska E. (2011), W jaki sposób mikrofinansowanie pomaga w walce z ubóstwem. Studium przypadku Grameen Bank, „Ekonomia Społeczna”, no. 2.
Kamińska A. (2012), W matni para banków, „Rzeczpospolita”, nr 9311.
Kappel V., Krauss A., Lontzek L. (2010), Over-indebtedness and Microfinance. Constructing an Early Warning Index. Center for Microfinance – University of Zurich, http://www.accion.org/Document.Doc?id=899 (access: 03.10.2013).
Maison D. (2013), Polak w świecie finansów, WN PWN, Warszawa.
Ordoñez G. L. (2013), Sustainable Shadow Banking, “National Bureau of Economic Research Working Paper”, no. 19022.
Pozsar Z. (2008), The Rise and Fall of the Shadow Banking System, http://www.economy.com/sbs (27.12.2013).
Raport – Mikropożyczki w Polsce (2013), Związek Firm Pożyczkowych, http://zfp.org.pl/ (access: 28.12.2013).
Rick M. (2010), Shadow Banking and Financial Regulation, “Columbia Law and Economics Working Paper”, no. 370, http://dx.doi.org/10.2139%2Fssrn.1571290.
Schwarcz S. (2012), Regulating Shadow Banking, „Review of Banking and Financial Law”, vol. 31, no. 1.
Shadow Banking Green Paper (2012), European Commission, http://ec.europa.eu/internal_market/bank/docs/shadow/green-paper_en.pdf (access: 17.09.2013).
Shadow Banking: Strengthening Oversight and Regulation (2011), The Financial Stability Board. http://www.financialstabilityboard.org/publications/r_111027a.pdf (access: 27.12.2013), http://dx.doi.org/10.2139%2Fssrn.2182601.
Solarz M. (2011), The role of social lending in financial inclusion, [in:] Financial sciences, E. Bogacka-Kisiel (ed.), “Research Papers of Wroclaw University of Economics”, no. 184.
Solarz M. (2013), Financial capability development as the responsible finance instrument counteracting financial exclusion, [in:] Finance and Accountancy for Sustainable Development – Sustainable Finance, G. Borys, M. Solarz (eds.), “Research Papers of Wroclaw University of Economics”, no. 302.
The Global Financial Inclusion Database (2013), The World Bank, http://databank.worldbank.org (30.09.2013).
Zaleska M. (2012), Szara bankowość, „Gazeta Bankowa”, nr 9.
How to Cite
Number of views and downloads: 354
Number of citations: 0