The Financial Stability Board has therefore opted to define the shadow banking system fairly broadly as “the system of credit intermediation that involves entities and activities outside the regular banking system”. Put simply, this definition covers bank-like entities and bank-like activities which are not subject to banking regulation.
BIS Review 4/2008  1  Given the headwinds in the global arena, the challenge for policymakers is to craft sound macroeconomic policies that will further strengthen the domestic economy.