Shadow Banking Market Growth, Size, Share, Trends, Key Players Analysis, and Forecast till 2031

The shadow banking market is expected to register a CAGR of 5.2% in 2023–2031. Regulatory changes and the rise in fintech are likely to remain key shadow banking market trends.

Shadow Banking Market Analysis

Banks are the key functional institutions in the economy. shadow banking systems can be understood as intermediary institutions that function like a banks but are not regulated as a bank is. This type of system consists of various components that fall outside the regulatory realm of traditional banking. These components are brokers, lenders, and other credit intermediaries.

Shadow Banking Market Overview

In the past decade or so, the shadow banking secotor has grown manifolds. Advanced economies have the largest shadow banking networks, with narrower measures indicating stagnation and broader measures (including investment funds) showing expansion since the global financial crisis. In developing market nations, shadow banking has grown faster than traditional banks. Shadow banking can complement traditional banking by increasing lending access, improving market liquidity, transforming maturity, and sharing risk.

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Shadow Banking Market: Strategic Insights

Shadow Banking Market

• 
  CAGR (2023 - 2031)

  5.2%
• Market Size 2023
  US$ XX Million
• Market Size 2031
  US$ XX Million

Market Dynamics

GROWTH DRIVERS

• Growth in NBFI (Non-Bank Financial Intermediation) sector

FUTURE TRENDS

• Regulatory changes and rise in Fintech

OPPORTUNITIES

• Developing Economies

Key Players

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

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Type

• Money Market Funds
• Bond Funds
• Finance Companies
• Special Purpose Entities
• Others

Application

• Securitization
• Alternative Credit
• High-Interest Savings
• Innovative Financial Products

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Shadow Banking Market Drivers and Opportunities

Growth in NBFI (Non-Bank Financial Intermediation) Sector to Favor Market

According to the 2021 FSB (Financial Stability Board) data, the NBFI industry had significant growth owing to increased investment fund values and inflows during the economic recovery period. The NBFI sector increased by 8.9%, exceeding the five-year average of 6.6%. Its percentage of total global financial assets remained unchanged at 49.2%. This drives the demand in the shadow banking market.

Developing Economies – An Opportunity in Shadow Banking

Shadow banking systems offer finance alternatives to underrepresented market niches in developing economies. Shadow banking in developing nations like China and India bridges the financing gap in the official financial system by offering alternative financing options to market segments underserved by established banks. This promotes economic growth.

Shadow Banking Market Report Segmentation Analysis

Key segments that contributed to the derivation of the shadow banking market analysis are type and application.

• Based on the type, the shadow banking market is divided into money market funds, bond funds, finance companies, special purpose entities, and others. The money market funds segment held the largest share of the market in 2023.
• By application, the market is segmented into securitization, alternative credit, high-interest savings, and innovative financial products.

Shadow Banking Market Share Analysis by Geography

The geographic scope of the shadow banking market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.

North America has dominated the shadow banking market. According to the 2023 Federal Reserve Data, the amount that US banks have lent to so-called shadow banks has crossed the $1 trillion mark. Thus, the shadow banking market is undergoing substantial development in North America.

Shadow Banking Market Report Scope

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Shadow Banking Market News and Recent Developments

The shadow banking market is evaluated by gathering qualitative and quantitative data post post-primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for shadow banking and strategies:

• JPMorgan Chase and Co. has accelerated the pace of securitizing billions of dollars of its loan portfolio in anticipation of proposed new US capital requirements for large banks. The bank has US$ 1.3 trillion in loans at the end of June 2023. Securitization helped the company to take the loan off its balance sheet. (Source: JPMorgan Chase and Co., Press Release, 2023)

Shadow Banking Market Report Coverage and Deliverables

The “Shadow Banking Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles