Legal aspects of Shadow Banking

Shadow Banking system, as an investment method, while being an integral part of the supervised banking system, is a rival for banks and governance institutions in financing and oversight. As a result, its development has created a situation for regulated institutions, which leads to concerns about the legal and regulatory responsibilities of the banking and financial system for investment not guaranteed. Because the extension of the specific conditions for shadow banking may limit the formal market and affect the change in financial stability and how the monetary sectors are monitored. Obviously, because of the interconnectedness of the monetary and banking markets and capital markets, shadow banking can endanger the financial and monetary markets simultaneously. Therefore, the consequences of this, while noting investors, also target the regulator institutions in the monetary and financial markets and require the strengthening of legal instruments in the intermediate and immediate market. In this paper, considering the principles of economic rights, the important issues of shadow banking are examined in terms of the intermediate and immediate monetary market segments and the legal and regulatory context of Shadow Banking in Iran. By considering the advantages and challenges of this issue, its economic rights we will analyze.