Shadow banking has grown significantly as financial institutions aim to avoid regulatory capital requirements in the formal banking sector. However, despite its appeal, it remains vulnerable to irrational shocks that can trigger systemic panic, endangering the solvency of the entire banking system and causing crises. This chapter examined the spillover effect in shadow banking systems among the BRICS economies using data from 2002 to 2022 and a Panel Vector Error Correction model. The study found significant growth in OFI activity across BRICS countries, indicating a strong positive correlation among them. Cointegration analysis revealed long-term relationships among OFI variables, suggesting shared stochastic trends. This implies a stable, long-run relationship among their financial activities, indicating synchronisation in their shadow banking systems over time despite short-term fluctuations. Therefore, a comprehensive understanding of shadow banking activities within BRICS economies is essential for policymakers, regulators, and market participants to effectively assess and mitigate systemic risks, promote financial stability, and sustain global economic growth. This chapter's findings highlight the need for policymakers to consider the interconnectedness of shadow banking activities within the BRICS and other emerging economies when formulating policies to enhance financial stability.