5 We are, of course, addressing these risks within prudentially regulated firms through various types of liquidity regulation and supervision, as well as changes in practice by the firms that clear tri-party repo transactions. But, as demonstrated in the years preceding the crisis, short-term wholesale funding can support a form of shadow banking outside the regulatory perimeter.
Indeed, one might expect that as regulatory and supervisory practice forces the internalization by regulated firms of the systemic costs of excessive dependence on  4  See Financial Stability Board (2014), “Adequacy of Loss-Absorbing Capacity of Global Systemically Important Banks in Resolution (PDF),” (Basel, Switzerland: Financial Stability Board November 10).