Allied Market Research


Shadow Banking Market

Shadow Banking Market Size, Share, Competitive Landscape and Trend Analysis Report by Service Type and by End User : Global Opportunity Analysis and Industry Forecast, 2023-2032

BI : Financial Services

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Author's: | Onkar Sumant
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Shadow Banking Market Outlook - 2027

The global shadow banking market size is experiencing a significant growth, and is expected to expand in the future, owing to rise in demand for credit creation. Shadow banking is a term used to describe different financial institutions, which facilitates bank like transactions but do not follow legal surveillance of a country. Furthermore, it consists of brokers, lenders, and creditors who use shadow banking for lending purposes to gain profit from it without following a regulated procedure. In addition, shadow banking allows businesses and other financial institutions to raise funds in the event when bank loans are unavailable.

COVID-19 scenario analysis:

  • The COVID-19 pandemic created severe health, social, economic, and financial security threats.
  • Non-banking finance companies (NBFCs) or shadow banks give access mainly to small and medium-sized enterprises, infrastructure, and real estate segments that were already severely affected by the lockdown.
  • Owing to disruption from the pandemic, businesses need to adjust to changes optimally, which, in turn, results to repositioning of all models and mechanisms.
  • Lending firms are likely to experience elevated late payments over the period, as disruption due to the pandemic would have a significant effect on the cash flow of borrowers.

Top impacting factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis:

Surge in adoption of shadow banking in real estate projects to avoid regulatory framework and increase in adoption of shadow banking in emerging countries drive growth of the market. However, strict regulations imposed by governments to avoid shadow banking practices hamper growth of the market. Furthermore, rise in adoption of shadow banking by various industries and non-financial institutes to surge their profit and grow in emerging countries such as India and China is expected to provide lucrative opportunities for the market.

The global shadow banking market trends are as follows:

Rise in demand for shadow banking:

Shadow banking activities are on the rise at high levels in both industrialized and developing economies. After the financial crisis of 2008, the U.S. has seen a substantial increase in adoption of shadow banking to surge their economy.

Throughout many emerging countries, shadow banking offers alternate investment and lending tools to under-served markets. The fast-growing form of shadow lending is peer-to-peer (P2P) credit, which is mediated via digital networks that effectively match depositors and borrowers. Development and growth in emerging markets is less complex than developed countries.

Growth of shadow banks in Canada:

The Canadian shadow banking industry has expanded more than conventional banking system after the recession of 2008. In addition, the Canadian government introduced various new mandates for shadow banking such as peer-to-peer lending, which drives the shadow banking market growth. Rise in burden on the financial sector has provided a greater role for shadow banks in Canada.

Key benefits of the report:

  • This study presents analytical depiction of the global shadow banking market size along with the current trends and future estimations to determine the imminent investment pockets.               
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global shadow banking market share.      
  • The current market is quantitatively analyzed to highlight the shadow banking market growth scenario.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the shadow banking market.               
  • The report provides a detailed market analysis based on the present and future competitive intensity of the market.

Shadow Banking Market Report Highlights

Aspects Details
By Service Type
  • Mobile Payment Systems
  • Hedge Funds
  • Peer-to-Peer Lending
  • Private Equity Funds
  • Securities Broker Dealers
  • Others
By End User
  • Business
  • Individuals
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (UK, Germany, France, Spain, Italy, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players

Morgan Stanley, HSBC Holdings PLC, Bangkok Bank Public Company Limited, Barclays Bank Plc, Goldman Sachs Group, Inc., JPMorgan Chase & Co., Financial Stability Board, Credit Suisse Group AG, Standard Chartered PLC, UBS Group AG

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Shadow Banking Market

Global Opportunity Analysis and Industry Forecast, 2023-2032