It means submitting their financial policies to peer review within the FSB and external review by the IMF. Fundamentally, it means adopting coherent macro policies and allowing real exchange rates to adjust to achieve external balance over time. Indeed, in a world of global capital, all systemically important countries and common economic areas should move towards market-based exchange rates. References Bergsten, F. 2009.
Using the Financial Stability Board’s (FSB) broad definition of shadow banking, assets of non-bank financial entities in the euro area have more than doubled over the past decade, to reach EUR 23.5 trillion by December 2014.