Measuring shadow banking in Central and Eastern European countries: A new dataset, 2004–2019

Abstract

There is hitherto no consensus on the measurement of shadow banking phenomena. The differences can be attributed to the various conceptual definitions of the shadow banking system, lack of data, and difficulties of data compilation. This study developed a unique dataset for measuring the size and main structural characteristics of the shadow banking systems of 11 Central and Eastern European Union (EU) member states. Using several publicly available datasets, the authors constructed an annual database for 2004–2019 as a tool to reliably analyse the region’s shadow banking system. To compare these data with those of Western European countries, the study compiled a dataset using the same methodology for three developed Western European countries. The findings show that the size of shadow banking in Central and Eastern European countries relative to their gross domestic product (GDP) is much smaller and its structure significantly different from that in developed EU countries