These implications are potentially quite profound for central banking and banking regulation, considering that the shadow banking  4  Much of the attention devoted to securities lending in the wake of the crisis focused on the program run by AIG.
The turbulence in financial markets came about against a backdrop of remarkable strength in the global economy. We had seen continuing robust demand for Canadian goods and services that led to a significant improvement in our terms of trade, helping to support the Canadian dollar. Despite this positive backdrop, there were signs of potential trouble in the global economy.