United States of America passed the Dodd-Frank Act in 2010 that strengthened the arms of Federal Reserve to regulate all institutions of systemic importance. In order to put a control on the burgeoning shadow banking activities, the European Union has also put in place some measures, which inter alia include prudential rules concerning securitisation, regulation of credit rating agencies, etc.
Further, at the request of G-20 countries, at international level, FSB has been working towards strengthening the oversight and regulation of the shadow banking system so that the risks emanating from them may be mitigated. Various other countries, including India are working towards improving the regulatory framework so as to curb the shadow banking activities, which pose a risk to financial stability.