The Basel III capital standards have already been approved, whereas a minimum standard for GLAC is currently under development. 2  BIS central bankers’ speeches  3  Parallel banking – there is no light without shadow  Ladies and gentlemen, we haven’t yet crossed the finishing line in our quest to solve the “too big to fail” problem.
But that is not the only area which needs a lot more work. If we want to safeguard financial stability in future, regulators will need to set their sights beyond the banking system – to the shadow banking system. But I have my reservations about the term “shadow banking system”. The word “shadow” usually conjures up images of unsavoury, shady activities.