Tabs

Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
 
Qualified Mortgage - Qualified Residential Mortgage
Swaps
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Capital
Deposit Insurance
Interchange
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Preemption
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Appraisals
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Thursday, October 2, 2014

IMF Calls for Greater Regulation of ‘Shadow Banking’

The International Monetary Fund warned that the growth in shadow banking — whose assets exceed those of the regulated bank sector — could pose financial stability risks as more lending migrates to these institutions. The IMF called for economic authorities and financial supervisors to work together to ensure that shifts to shadow banks do not undermine financial stability. The IMF said:

The appropriate policy response is not to lower prudential standards for banks, but to ensure adequate standards for shadow banks. Financial sector regulation needs to take a more encompassing view of the financial system.

Shadow banks — including hedge funds, money market funds, finance companies and others — are financial intermediaries that take money from investors and lend it but that do not receive the regulatory treatment banks do. These institutions now account for $15-25 trillion in assets in the U.S., the report noted, amounting to an estimated third of U.S. systemic risk.

Read the IMF report.

No comments:

Post a Comment

Please read our comment policy before making a comment.