The motivation for regulatory reforms in the shadow banking space in developed economies, especially in the US, emanated from certain dilemmas that, on the one hand, there was a need to de-risk the overgrown complex banking industry which inevitably needs the presence of shadow banking entities to absorb those risks and the concerns over the role of shadow banking entities in consummating the financial crisis, on the other.
Furthermore, by also stating that price stability is to be maintained "over the medium term", the Governing Council acknowledges the existence of shocks to inflation which monetary policy cannot control and makes clear that the ECB intends to pursue its objective by responding differently to different economic shocks.