In the aftermath of the financial crisis, the shadow banking system became a prime target of analytical attention by economists.While initially seeking to curtail shadow banking, the global regulatory rhetoric took a decided shift. The current policy stance can then be characterized as one of insufficient regulatory reforms on the one hand, coupled with reforms to encourage more “market based banking".In the event of a crisis in the shadow banking system, this stance will leave few other options but an official expansion of the safety net to these markets and market actors. This in turn leads to a situation in which a de facto dealer of last resort function of the central bank exists without accompanying measures to curtail the risk taking of the shadow banking system. This, at least in theory, encourages excessive risk taking by private actors aware of an implicit government-put. Spelling out and contextualizing this contradiction of stated policy goals and the effect of actual measures implemented is the main goal of this paper.