To what extent will the tougher requirements on regulated institutions cause risks and activities to flow into the shadow banking sector and what will be the implications for banks and for systemic risk?
Work is currently ongoing at the international level, under the leadership of the FSB, to strengthen the oversight and regulation of the shadow banking sector, and European authorities are also working on this issue. Yet, authorities will still need to remain extremely vigilant over the coming years in tracking the ultimate distribution of risks.   Finally, many reforms are being introduced simultaneously.