Conclusion If we think back to the rapid growth of the shadow banking system in the pre-crisis period, we are reminded of some glaring vulnerabilities: Large firms that could themselves be considered shadow banks and that relied on the shadow banking system for a significant proportion of their funding – a group that included the "free-standing" investment banks – were outside the perimeter of prudential regulation.
In this context, as presented eloquently by most eminent policy-makers in industrialized countries, the recent protectionist measures by some countries against business process outsourcing misses out not only the efficiency gains from such outsourcing but also the employment gains from resources saved in the process and deployed in other employment generating sectors.