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Are Shadow Banks Hiding in Croatia as Well?
This paper aims to shed light on the term shadow banking and the importance of examining shadow banks and their activities from the point of view of financial stability. In this context, an analysis of the domestic financial system and business practices was made in order to assess the role of shadow banks in Croatia and identify systemic risks that may arise from that source. The results of the analysis suggest that the share of non-bank financial institutions and the maturity structure of their liabilities and assets do not currently pose a risk that could threaten financial stability, while the group of other financial intermediaries, including leasing, factoring and credit unions, stands out among the most risky institutions.
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