First, the broader the regulatory view, the less room for regulatory arbitrage remains – provided regulation is internationally coordinated. Second, only a broad view allows the regulators to keep track of the constant evolution of the shadow banking sector. For the same reasons, it is imperative to define the shadow banking sector not in terms of entities but in terms of activities.
It is a long list! Across the globe, “financial innovation….vastly outpaced regulation and supervision…. Financial institutions went on a frenzy of reckless risk-taking…. [relying] more on short-term funding, dramatically lowering lending standardsv.”  The Banking Crisis – A Decade On  Many of these failures are clearly relevant to the catastrophic impacts of the financial crisis in Ireland too.