Particularly in boom periods, non-regulated institutions tend to take on an increasing share of intermediation and cross-border credit provision. This is why enhanced supervision and regulation of shadow banking will be one of the top priorities for the Financial Stability Board in the coming months.
In this respect, we need to heed one of the lessons of this Hall: it will do no good to tightly regulate a market only to see the bulk of activity flee beyond our reach. 6  BIS central bankers’ speeches