There are now over 3,500 smaller institutions, with many of them channelling money to the shadow banking activities, including through trust companies in exchange for ‘participation’ or ‘beneficiary’ rights. They have been more active participants in the shadow banking industry because their thinner deposit base did not allow for a big increase in traditional loans.
See European Banking Authority (2018), EBA report on the impact of fintech on incumbent credit institutions’ business models, July. 9 See Celent (2018), Global Tech Spending Forecast: Banking Edition, 2018, March. 10 See F.A. Hayek’s (1968), “Der Wettbewerb als Entdeckungsverfahren”, a 1968 lecture, sponsored by the Institut  für Weltwirtschaft at the University of Kiel. It was published as No.