Transforming shadow banking into more resilient market-based finance As measures are put in place to make banks more resilient, there are legitimate concerns that greater scrutiny and regulation of the traditional banking sector could result in more risky activities migrating beyond the regulatory perimeter to the shadow banking sector.
Noah is undertaking this work at an extremely difficult time for the global and domestic economy. Let me first deal with the advanced economies, particularly the Eurozone and the United States. The crisis in the advanced economies persists, despite the temporary breather that global financial markets appear to be taking in the past few days.