Technavio announces global shadow banking market to reach $139 trillion by 2020

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This market research report presents a comprehensive segmentation of the global structured finance market by geography (Americas, EMEA, and APAC). The key vendors analyzed in this report are Bank of America Merrill Lynch, Barclays, HSBC, Credit Suisse and Citi

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Technavio’s market research analysts estimate the global shadow banking market, to grow at a CAGR of 11% between 2016 and 2020. Shadow banking system is a network of financial institutions comprising non-depository banks like the structured investment vehicles, hedge funds, investment banks, and money market funds. The shadow banking sector is expected to grow during the forecast period which will increase the job opportunities for compliance specialists, owing to growing emphasis on imposing regulations in the sector especially by the banks and financial regulators. EMEA dominates eth global shadow banking market, accounting for 48% of the overall market share. The major reason for this region’s growth is because the large and medium enterprises in the region need credit to generate working capital market.

The new market research report from Technavio provides a breakdown and analysis of the shadow banking segments by technology.

“The shadow banking market has a huge growth potential in the UK and the US, because it supports the funding of micro, small and medium enterprises. The regulators in these regions are supporting the crowdfunding platforms to get money transfer licenses, which will help customers grow. Niche segments like gaming, education, music, non-profits and charitable organizations, research, and local projects are forming their own platforms to provide better services,” says Bharath Kanniappan, Lead Analyst, Industrial Automation, Technavio Research

The shadow banking institutions provide credit to the marginalized borrowers, including small and medium scale industries that are unable to avail huge funds from traditional banks. These companies often opt for shadow banks to meet their short-term. For instance, in China, small to medium sized regulated financial firms are directed to lend rural borrowers to encourage credit access. Such measures are expected to bring liquidity into the system thereby ensuring credit transformation.

The leading players in the global shadow banking market are Bank of America Merrill Lynch, Barclays, HSBC, Credit Suisse and Citibank. There has been an increase in the number of shadow banks and a lot of changes have been made in the financial reform legislation which have imposed stricter requirements of the capital flow of the banking and the financial institution. The market is extremely competitive with the presence of large number non-banking institutions. Moreover, new players are expected to enter the market during the forecast period because there is no regulatory body for the shadow banks.

A more detailed analysis is available in the Technavio report, Global Shadow Banking Market 2016-2020.

We can customize reports by other regions and specific segments upon request.

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