The size of the shadow banking sector (SBS) has more than doubled in the Czech Republic over the last decade. This places a potential burden on policy makers. On the one hand, the SBS complements regular banking by expanding access to credit and investments, enabling better risk sharing and maturity transformation, and sup-porting market liquidity. On the other hand, SBS activities can put the stability of the financial system at risk and amplify its procyclicality by exacerbating the build-up of leverage and asset price bubbles. We implement a FAVAR model of the Czech economy to determine the impact of macroeconomic factors on the SBS. We find that the SBS: (i) is sensitive to changes in market interest rates and term spread; (ii) exhibits great procyclicality; (iii) can act as a complement to regular banking and satisfy some additional demand for credit. We also define some potential risks of continued growth of the SBS, linked to our empirical evidence.

中文翻译：

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将捷克影子银行业置于光明之下

在过去十年中，捷克共和国的影子银行业（SBS）的规模增加了一倍以上。这给决策者带来了潜在的负担。一方面，SBS通过扩大获得信贷和投资的渠道，实现更好的风险分担和期限转换以及支持市场流动性来补充常规银行业务。另一方面，SBS的活动可以通过加剧杠杆作用和资产价格泡沫的形成，使金融体系的稳定性面临风险，并加剧其顺周期性。我们实施捷克经济的FAVAR模型，以确定宏观经济因素对SBS的影响。我们发现，SBS：（i）对市场利率和期限利差的变化敏感；（ii）表现出很大的顺周期性；（iii）可以作为常规银行业务的补充，并满足一些额外的信贷需求。我们还根据经验证据确定了SBS持续增长的一些潜在风险。