Shadow banking: the assessment methods and aspects of its regulation

Since shadow banking has strongly developed in recent years, there is a need for the objective assessment of its scope, the substantiation of its proper regulatory and restrictive measures, and the creation of an efficient mechanism in this regard. Due to the lack of relevant studies and methodological background, the research summarizes and analyzes several approaches to assessing the extent of shadow banking. The assessment methods should be devised in terms of the scale of the shadow sector in the economy as an economic factor, the strict legislative regulation as a political factor, and business climate index as a psychological factor. The possible calculation methods for each factor are considered from the perspective of Russian and international practices. An integrated assessment technique of shadow banking is proposed as well. The author assumes that factor analysis can help introduce the restrictive and incentive measures to regulate shadow banking.