Rethinking Shadow Banking: Friend or Foe?
Keywords:
Securization, financialization, shadow banking, peripheryAbstract
Shadow banking has been held responsible as the chief culprit of financialization and financial crises after the 2008 financial meltdown. Considering the large scale of financial industry of Western countries, especially the Unites States of America (US) and the United Kingdom (UK), experiences show that the shadow banking has fed these countries’ economies during the stagnation, but has been subjected to massive runs on repos during the slumps. It has also become evident that the income gap caused by deindustrialization in these countries filled by the revenues of financial industries. However, the massive volume of shadow banking not only disguised the basic structural problems in the US and the UK economies, but also created further deindustrialization waves among the peripheral countries. On the other hand, more profoundly regulated continental European countries were not affected so largely by the negative outcomes of income fluctuations created by shadow banking. During and after the financial turmoil of 2008 crisis, the positive contributions of shadow banking have been ignored. One important aspect of shadow banking is its capacity to mobilize idle financial resources. This capacity has far greater importance for emerging economies than the developed ones since it could reduce the financial dependence of these countries on foreign funds. Thus, the purpose of this study is to discuss the positive contributions and feasibility of shadow banking for developing peripheral economies.
Published
Issue
Section
License
Copyright and Open Access Policy
The Review of Socio-Economic Perspectives (RSEP) is committed to the principles of open access and the widest possible dissemination of scholarly knowledge. The journal provides immediate and unrestricted access to all published content, enabling readers worldwide to freely read, download, copy, distribute, print, search, and link to the full texts of articles without financial, legal, or technical barriers.
RSEP supports the principles of the Budapest Open Access Initiative (BOAI), which advocates free and unrestricted access to peer-reviewed scholarly research.
Copyright Ownership
Authors retain the copyright of their published works.
By submitting and publishing their manuscripts in RSEP, authors grant the journal a non-exclusive right to publish, reproduce, distribute, archive, index, and preserve the work in electronic and other formats for scholarly communication purposes.
The journal does not require authors to transfer copyright ownership to the publisher. Authors remain the legal copyright holders of their work after publication.
Licensing Policy
Beginning with Volume 2025, all articles published in RSEP are distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0).
Under the CC BY-NC 4.0 license, users are permitted to:
- Read, download, copy, and redistribute the material in any medium or format;
- Share the work with others;
- Adapt, remix, transform, and build upon the material;
provided that:
- Appropriate credit is given to the original author(s) and the journal;
- A link to the license is provided;
- Any changes made to the original work are clearly indicated;
- The material is not used for commercial purposes.
The full license terms are available at:
https://creativecommons.org/licenses/by-nc/4.0/
Previous Licensing Policy
Articles published before Volume 2025 were distributed under the Creative Commons Attribution 4.0 International License (CC BY 4.0).
The CC BY 4.0 license permits unrestricted use, distribution, adaptation, and reproduction in any medium, including commercial use, provided that appropriate credit is given to the original author(s) and source.
Articles published under CC BY 4.0 remain subject to the licensing terms that were in effect at the time of publication and are not retroactively relicensed.
Rights Retained by Authors
Authors retain the right to:
- Share their published articles on personal websites, institutional repositories, and academic networking platforms;
- Reuse parts or all of their work in future publications, books, teaching materials, and presentations;
- Deposit the published version of the article in repositories without embargo;
- Disseminate and promote their research freely.
Rights Granted to the Publisher
Authors grant RSEP the right to:
- Publish and disseminate the work as the original publisher;
- Archive and preserve the article permanently;
- Include the article in indexing, abstracting, and database services;
- Maintain the official version of record;
- Promote and distribute the published work through journal platforms and scholarly communication channels.
Open Access Statement
RSEP is a fully open-access journal. All articles are made freely available online immediately upon publication without subscription fees or access restrictions.
No embargo period is applied. Readers may access and use published content in accordance with the applicable Creative Commons license.
The journal believes that open access increases the global visibility, accessibility, usage, and impact of scholarly research while promoting the free exchange of scientific knowledge.
License Consistency
To ensure transparency and compliance with international indexing standards, the licensing information displayed on the journal website, article metadata, PDF files, and publishing platforms will remain consistent and accurately reflect the licensing terms applicable to each published volume.
