This thesis thoroughly investigates the relationship between regulated institutions, which engage in unregulated activities and the new shadow banking regulations. The purpose of this paper is to establish the impact of these policies on systemic risk arising from shadow banking and to identify possible remaining risks. The methods used in this thesis are literature research and a case study of Deutsche Bank. The author overviews the concept of shadow banking industry and its components. The paper features an extensive analysis of proposed initiatives and passed regulations. A detailed study of Deutsche Bank's role in the events leading up to the 2008 financial crisis identifies 4 areas of focus requiring regulatory attention. The following are cross-referenced with implemented regulation to showcase the impact on the organization.