It is important to protect the border between shadow and non-shadow banks, which implies that a macro-prudential regulator could introduce large exposures limits on exposures of regulated institutions to shadow banks. Similarly, we could introduce margin requirements for repo transaction with shadow banks. These are non-direct instruments and may not be efficient in addressing the risks emerging in the shadow banking sector.
The U.S. Fed has gained the competence to transfer non-bank financial institutions to the supervised perimeter. We do not have this powerful tool implemented in Europe. Certainly, some shadow banks grew too-big-to-fail and hence, they should be subject to the same surveillance as Global Systemically Important Banks (G-SIBs).