Shadow banking and its impact on the 2008 global crisis

The concept of globalization is seen as an element that has gained importance especially since the 1970s and has increased the interdependence of the economies of the countries. It is observed that competition in financial markets has increased with globalization. Financial institutions that aim to increase their profitability levels in an increasingly competitive environment have resorted to new methods. The shadow banking system that has emerged as a result of these methods is a profit-oriented system based on off-balance sheet transactions, which has different legal regulations and methods than the traditional banking system. In this study, it is aimed to reveal the globalization process and the shadow banking system, which has emerged as one of the innovations it has brought with it, the relationship of this system with the traditional banking system and its effects on the global crisis experienced in 2008.