Akademik Veri Yönetim Sistemi
Economic Systems, 2026 (SSCI, Scopus)
This study investigates the relationship between shadow banking and macroeconomic instability through credit expansion across 24 countries, offering a novel, empirical perspective on a critical, yet underexplored, aspect of financial systems. Employing an advanced methodology that incorporates impulse-response-specific shock moderator variables, we rigorously examine how shadow banking influences macroeconomic volatility. Our findings demonstrate that shadow banking significantly exacerbates macroeconomic instability globally, generating long-term and persistent effects. These destabilizing effects operate not only through the credit expansion channel, but also via the non-performing loans channel, underscoring the systemic risks posed by shadow banking. Although the magnitude and dynamics of these effects differ between developed and developing economies, shadow banking exerts substantial influence in both contexts. Overall, this study provides robust evidence on the mechanisms through which shadow banking undermines macroeconomic stability, offering important insights for policymakers and financial regulators seeking to mitigate the systemic risks associated with shadow banking activities in a global context.