Inside this Topic Guide
With regard to the work to transform shadow banking into resilient market-based finance, the FSB has replaced the term “shadow banking” with the term “non-bank financial intermediation” to emphasise the forward-looking aspects of the FSB’s work to enhance the resilience of non-bank financial intermediation. This change in terminology does not affect the substance of the FSB's work in this area, in terms of the monitoring framework and policy recommendations, which aim to address bank-like financial stability risks arising from non-bank financial intermediation.
Non-bank finance, or 'shadow banking', has not traditionally been the prime focus of prudential regulation and supervision. Whilst regulators acknowledge that non-bank finance provides a valuable alternative to bank funding and supports real economic activity, they believe that it may be a source of systemic risk to the financial system, if it involves bank-like activities such as transforming maturity and liquidity and creating leverage.
This guide focuses on the shadow banking initiatives developed by the Financial Stability Board and the European Commission.
Mark Shipman (Hong Kong)
Simon Gleeson (London)
Paul Landless (Singapore)
Caroline Meinertz (London)