Sunday, October 30, 2011

Financial Stability Board publishes recommendations to strengthen oversight and regulation of shadow banking

The Financial Stability Board (FSB) published today a report on Shadow Banking: Strengthening Oversight and Regulation. This report provides the FSB’s recommendations on this subject that were requested by the G20 Leaders at the November 2010 Seoul Summit.

The “shadow banking system” can broadly be described as “credit intermediation involving entities and activities outside the regular banking system.” According to one measure, the global shadow banking system grew rapidly before the crisis, from an estimated $27 trillion in 2002 to $60 trillion in 2007, and remained at around the same level in 2010.

See full Summary.