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Financial industry at the crossroads between current practices and ethical virtues

Vol:0, №:0, Year:0

SHADOW BANKING – CONSIDERATIONS ON ETHICAL ISSUES, SCOPE AND REGULATORY PROSPECTS

Teodora Cristina Barbu
faculty of finance, insurance, banking and stock exchange - Bucharest University of Economic Studies
Romania

Carmen Obreja
faculty of finance, insurance, banking and stock exchange - Bucharest University of Economic Studies
Romania

Iustina Boitan
faculty of finance, insurance, banking and stock exchange - Bucharest University of Economic Studies
Romania

Abstract
The main message of this paper relates to shadow banking, which has to regain investors’ confidence in respect of the efficient fulfillment of its intermediary role in the economy. The actual size of shadow banking, the behavior of shadow entities and the increasing concerns for regulating and monitoring them, at national and global level, prove that this particular segment of the financial market has to acquire new virtues and to generate trust among different typologies of investors. Another aim of the paper is meant to produce, indirectly, a shift in banking customers and investors' neutral attitude toward where their money is invested. Money collected and managed by financial intermediaries has to acquire a socially responsible dimension, in order to become a reliable tool for improving the quality of life. If investors will lower their desire to gain high yields and will pay more attention to the financial entities to which they entrust their financial resources, it is possible to create the premises for changing the financial behavior of the entire industry.

References

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Key words
mainstream banking, shadow banking, confidence, regulation

Citation
Boitan I., Barbu T., Obrej C. 2015, “Shadow banking –considerations on ethical issues, scope and regulatory prospects” in Boitan I., Barbu T. (Eds.) Financial industry at the crossroads between current practices and ethical virtues (Studies in Philosophy, Law and Economics), Sumy: Taadler Publishing House, LTD, pp. 54-69. Available at http://taadler.com/a63

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