Why do shadow banks exist? (40 marks) Will they replace traditional banks? What’s the future for them? (60 marks)

– There are two parts/questions to this topic, but they should be answered/flow in one single essay. 

– The essay should be up to 3000 words, allowing for plus or minus 10% on the word count. 
– Analysis: provide evidence to show that concepts and/or theories have been
understood and applied.  rationale and reasoning should be explained logically and clearly.
– Integration: incorporate other information and knowledge; avoid mere
summaries of reading. Please indicate how one point follows from another.
Please relate points back to arguments to bring out their relevance.
– Independent and critical thinking/analysis
– Generalisation of the topic: synthesise lessons and applications from the case.
There are several sources that should be used and cited but also please find more useful sources as well 
1. Contemporary Financial Intermediation Third Edition by Stuart I. Greenbaum; Anjan V. Thakor; Arnoud W. A. Boot 2016
2. The Industrial Organization of Banking : Bank Behavior, Market Structure, and Regulation by David VanHoose, 2017 and 2018   editions 
3. Financial Markets and Institutions, Global Edition by Frederic Mishkin and Stanley Eakins 2018

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