This chapter reviews literature on the expansion of non-bank financial intermediation into emerging markets and developing economies, and highlights the types of products and services provided by non-bank entities and the types of risk arising from this growth. The approach employed here is the traditional narrative review of literature, allowing the author to select relevant articles and other materials for inclusion in the discussion. The description covers the main types of activities undertaken by non-bank financial intermediaries in emerging and developing economies and the different role players in the financial markets. Thus, a brief review of contemporary shadow banking issues is presented for selected emerging economies and developing countries and information is provided on assets of shadow banking entities. Further, the chapter illustrates how the non-bank sector is positioned within the broader financial sector and the interactions between the so-called ‘shadow banks and formal banking institutions’. Finally, the chapter illustrates how the interconnectedness between non-bank institutions and other industries through the formal banking system could trigger systemic risk.