Global risk - monograph review: Jan Krzysztof Solarz, Shadow Banking. A Systemic Financial Innovation ",

Abstract

RESUME The monograph includes many valuable opinions from international experts, as well as the author’s reflections, rich statistical material and interesting case studies. After each chapter it includes problems and questions for students, thus it has the nature of a handbook. But, in my opinion, it will also be an important source publication for all of those interested in researching the shadow banking sector and designing business models which do not pose a threat to financial stability from the sector in question; its closing up would probably be nonsense. The author of the monograph rightly concludes that legal arbitration creates development potential for parallel banking - its limitation by means of European Union regulations and international standards is vital but insufficient. The demand for private money issued by parallel banking, e.g. for the excluded or those looking for inexpensive money, is decisive. The conclusion that the international aspect of origin and functioning of parallel banking has been ignored in the analyses conducted to date, and that it will increase in importance, is also significant. This also concerns financial pyramids, which in recent years have appeared on both a slocal and international scale. I presume these problems are also worth discussing more broadly with undergraduate and doctoral students (which, after all, was the intention of Professor Jan K. Solarz); unfortunately, finance and banking handbooks give shadow banking only rudimentary coverage, if any.