How Big is the Shadow Banking Market | Industry Trends & Forecast 2031

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Code: MTA8911

Publication Date: Sep 2025

How Big is the Shadow Banking Market?

According to 6Wresearch internal database and industry insights, the Global Shadow Banking Market was valued at USD 198.5 Billion in 2024 and is expected to reach USD 279.6 Billion by 2031, growing at a compound annual growth rate of 5.90% during the forecast period (2025-2031).

The market is driven by rising demand for alternative lending channels, growth of non-bank financial intermediaries, and increasing need for flexible credit solutions, coupled with advancements in financial technologies.

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Key Growth Drivers of the Shadow Banking Market

Increasing demand for alternative credit and investment solutions
Growth of non-bank financial intermediaries across economies
Rising participation of institutional investors in credit markets
Continuous expansion of securitization and structured finance
Advancements in financial technologies enabling faster lending

Shadow Banking Market Trends

Shadow Banking Market is witnessing notable growth with trends such as increasing involvement of fintech platforms in lending and investment activities. The market reach is being increased by the emergence of private credit funds, peer-to-peer lending, and securitization techniques. Since shadow banking offers greater returns than traditional banking, investors are becoming more interested in using it. The practices and transparency of shadow banking operations are being shaped by increased regulatory scrutiny. Additionally, institutional investors are actively participating in structured finance markets, including insurance companies and pension funds, which improves market stability and liquidity.

Emerging Developments in the Shadow Banking Market

Shadow Banking Market is increasing with the development of innovative credit products, digital lending platforms, and blockchain-based financing mechanisms. Diversified lending opportunities are being created by ongoing partnerships between fintech companies and non-bank financial institutions. Technological advancements in risk assessment and credit scoring models are driving an increase in investment in securitized products. To strike a balance between systemic stability and financial innovation, regulatory frameworks are progressively changing. Long-term market expansion is also anticipated due to the growing role of shadow banks in financing infrastructure projects and small and medium-sized businesses.