We investigate the size and evolution over time of shadow banks in the euro area, with a particular focus on their role in the funding of non-financial corporations (NFCs). Using an institution-based definition of shadow banks, which is consistent with available Eurosystem data, we find that, notwithstanding a significant heterogeneity across countries, the euro-area shadow banking system has grown in importance since the outburst of the global financial crisis. In addition, also its interconnectedness with the regulated banking system has increased over time. An econometric investigation shows that macroeconomic variables are the main determinants of the growth of loans to NFCs.
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