The jurisdictions where these problems are likely to be serious are few, and we do not want efforts to contain shadow banking activity unnecessarily to stifle genuinely productive intermediation and innovation.
The FSB, International Organization of Securities Commissions (IOSCO) and the BCBS have worked on addressing risks in several areas, such as money market funds, securitisation, banks’ links with shadow banks and securities financing transactions (SFTs). Broad policy frameworks have largely been finalised in these areas, with work ongoing in relation to SFTs (such as an assessment of the impact of proposed recommendations).