TY  - JOUR
T1  - Growth of the Shadow Banking System and Effectiveness of the
Monetary Policy in Egypt: An Empirical Analysis
AU - Gharieb, Yasmine Mohie El Din AU - El Sayed, Samy AU - Alfiky, Fakhry El Din Ali 
JO  - The Social Sciences
VL  - 12
IS  - 8
SP  - 1344
EP  - 1352
PY  - 2017
DA  - 2001/08/19
SN  - 1818-5800
DO  - sscience.2017.1344.1352
UR  - https://makhillpublications.co/view-article.php?doi=sscience.2017.1344.1352
KW  - Shadow banks
KW  -monetary policy effectiveness
KW  -inflation
KW  -Egypt
KW  -JEL Codes: E31
KW  - E52
KW  - G21
KW  - G22
KW  - G23
AB  - The 2008 global financial crisis has raised concerns about potential impact of the shadow banking
system on monetary system of a country. By utilizing Prais-Winsten regression and regression with
Newey-West standard error, the study examines the possible impact of the shadow banking system on inflation
and effectiveness of the monetary policy in Egypt using a quarterly data during the period 2008-2014. Based
on the five shadow banking functions classified in the Financial Stability Board report of the International
Monetary Fund in 2015, the study contributes to the existent literature by introducing a new composite measure
of activities of the shadow banking system in Egypt. The study found a positive and statistically significant
impact of activities of the shadow banking system on inflation but a negative and statistically significant impact
on effectiveness of the monetary policy measured by the inflation gap. The study concluded that coordination
between the monetary authority and financial supervisory authority which supervises and regulates shadow
banking activities in Egypt is necessary. Moreover, the monetary authority should consider the shadow
banking activities when planning and conducting the monetary policy.
ER  -