In the build-up phase, any public support would be recouped by additional ex post levies on banks. This is consistent with the emerging consensus in Europe, also reflected in the BRRD, that the financial sector itself should pay for the cost of crises.
However, in both the structures, shadow banking operates outside the regular banking system and financial intermediation activities are undertaken with less transparency and regulation than the conventional banking. In a sense, shadow banks are like icebergs – more deeply spread than what they seem to be. 2.