Fifth, shadow banking decreases the energy of financial policy (Estrella, 2002).

Fifth, shadow banking decreases the energy of financial policy (Estrella, 2002). This can be partially because shadow banking isn’t controlled into the way that is same conventional banks, but primarily because securitization insulates banks’ lending activity through the funds obtained through the main bank (Gertchev, 2009). Simply put, such banks’ lending depends less from the…