6  Saudi Arabia and other OPEC members, like the IEA and most participants in the oil markets, did not anticipate the surge in consumption we have seen this year either. OPEC actually reduced its production targets in 2003 and again in early 2004 out of concern that weak oil demand would cause price declines.
The first one is straightforward: shadow banking activity can be used to circumvent and undermine banking regulations. This may become increasingly important given the new Basel III standards for bank capital and liquidity coming into force. The second concern reflects a number of vulnerabilities inherent in MBF, perhaps the most important of which is exposure to panics.