'Appropriate monitoring and regulatory frameworks for the shadow banking system needs to be in place to mitigate the build-up of risks', the FSB said in the report published on its website.
While watchdogs have reined in excessive risk-taking by banks in the wake of the collapse of Lehman Brothers Holdings Inc. in 2008, they are concerned that lenders might use shadow banking to evade the clampdown. Michel Barnier, the European Union’s financial services chief, is planning to target money market funds in a first wave of rules for shadow banks next year.
The FSB, a global financial policy group comprised of regulators and central bankers, found that shadow banking grew by $41 trillion between 2002 and 2011. The share of activity based in the U.S. has declined from 44% in 2005 to 35% in 2011, moving to the U.K. and the rest of Europe.
Hit the link below to access the complete Bloomberg article:
Shadow Banking Grows to $67 Trillion Industry, Regulators Say
Deutsche Bank Uses ‘First Call’ Principle for Crises, CEOs Say
The Alchemists: Three Central Bankers and a World on Fire
Hubris: How HBOS Wrecked the Best Bank in Britain
