Search Results for “shadow banking” – Digital Finance Analytics (DFA) Blog

Global Shadow Banking Sees Heightened Regulatory Scrutiny

Continued increases in shadow-banking regulation should be a net positive for system-wide stability and liquidity if maintained over the medium term, says Fitch Ratings. Overall shadow-banking asset levels have remained manageable. However, more rapid growth in certain regions and activities is expected to attract additional regulatory scrutiny, given the potential indirect effects of market interconnectedness … Continue reading “Global Shadow Banking Sees Heightened Regulatory Scrutiny”

Shadow Banking Risks Reduced – FSB

The FSB defines shadow banking as “credit intermediation involving entities (fully or partially) outside the regular banking system.” The aspects of the shadow banking activities generally considered to have made the financial system most vulnerable and that contributed to the financial crisis have declined significantly and are generally no longer considered to pose financial stability … Continue reading “Shadow Banking Risks Reduced – FSB”

Global Shadow Banking Worth $34 trillion in 2015, Up 3.2%

The Financial Stability Board (FSB) today published the Global Shadow Banking Monitoring Report 2016. The report presents the results of the FSB’s sixth annual monitoring exercise to assess global trends and risks in the shadow banking system, reflecting data up to the end of 2015. It covers 28 jurisdictions, including Belgium and the Cayman Islands … Continue reading “Global Shadow Banking Worth $34 trillion in 2015, Up 3.2%”

Shadow banking and where it came from

From The Conversation. The term “shadow banking” often has connotations of dodgy lending and borrowing practices, out of reach of regulators. And while its use may contribute to risk, in reality shadow banking does serve a purpose in our economy, one that is increasingly connected to our day-to-day lives. Shadow banking affects not only the … Continue reading “Shadow banking and where it came from”

Shadow banking increases the risk of another global financial crisis

From The Conversation. Banks may still be evading increased regulation by shifting activities to shadow banking. This system is well established as part of the financial sector, but it provides products that separate an investor from an investment, making it more difficult to evaluate risk and value. This lack of transparency increases the risk in … Continue reading “Shadow banking increases the risk of another global financial crisis”

Transforming Shadow Banking into Resilient Market-based Finance

The “shadow banking system” worth at least $36 trillion in 2014 globally, can broadly be described as “credit intermediation involving entities and activities (fully or partially) outside the regular banking system” or non-bank credit intermediation in short. Such intermediation, appropriately conducted, provides a valuable alternative to bank funding that supports real economic activity. But experience … Continue reading “Transforming Shadow Banking into Resilient Market-based Finance”

Will Shadow Banking Regulation Be Sufficient?

The Financial Stability Board (FSB) has launched a peer review on the implementation of its policy framework for financial stability risks posed by non-bank financial entities other than money market funds (“other shadow banking entities”). The objective of the review is to evaluate the progress made by FSB jurisdictions in implementing the overarching principles set … Continue reading “Will Shadow Banking Regulation Be Sufficient?”

Shadow Banking And Monetary Policy

The Bank of England just published a research paper “Do contractionary monetary policy shocks expand shadow banking?” We previously discussed the role and importance of shadow banking, making the point that up to the 1980s, traditional banks were the dominant institutions in intermediating funds between savers and borrowers. However, since then, the role of market-based … Continue reading “Shadow Banking And Monetary Policy”

Banking Code Changes to Assist Low Income Customers and Farmers in Drought

The ACCC has authorised changes to the Australian Banking Association’s (ABA) Banking Code of Practice, after imposing several conditions aimed at improving the code’s benefits to low-income customers. The ABA, on behalf of its 23 members, sought ACCC authorisation for changes to update its Banking Code in response to recommendations of the Royal Commission into … Continue reading “Banking Code Changes to Assist Low Income Customers and Farmers in Drought”