Shadow banking
FSB offers China advice on tackling shadow banking risks
Peer review team led by BoE’s Jon Cunliffe recommends establishing an inter-agency group to coordinate surveillance, among other measures designed to reduce shadow banking risks
Swedish deputy wants macro-pru tools for non-banks
Policy-makers must develop new macro-prudential tools for addressing risk in the non-banking sector, warns Sveriges Riksbank’s Cecilia Skingsley
FSB holds fire on non-bank G-Sifi designation amid backlash
Organisation to delay decision on whether asset managers should be included in designation of systemic ‘non-bank non-insurers’ after consultation attracted widespread criticism
Israel’s Flug wants to shine light on ‘grey market’
The alternative financing market, composed of both law-abiding and criminal elements, needs to be shrunk and brought under the supervisory spotlight, says Bank of Israel's governor
Constâncio supports guided stress tests of shadow banks
ECB vice-president continues his campaign for new macro-prudential tools that can impact non-bank institutions, highlighting the importance of developing a ‘clearer picture’ of the sector
Non-financials may be caught by shadow bank rules
Banks warn of 'massive' impact from European Banking Authority proposals, which would limit credit lines
Shadow banking risks ebbing in China
China has the world’s third-largest shadow-banking sector, but the risks it poses to the overall financial system are overstated, especially following moves by the State Council
Constâncio suggests new shadow bank powers for Esma
ECB vice-president again underlines need for supervisors to take on new tools and responsibilities for tackling shadow banks, but suggests at least some may be wielded by other bodies
Financial stability risks on the rise, IMF warns
Global financial stability report warns risks have increased and ‘rotated’ in the past six months, with emerging markets now more vulnerable
Fed research: Three channels of shadow banking fragility
Working paper models the increased fragility created by shadow banks, even though they provide higher levels of credit to the economy
Bundesbank's Dombret: shadow banking oversight is 'miles away'
Regulators may never be able to fully monitor the risks created by shadow banking, says Bundesbank board member
Fischer looks to strengthen non-bank solvency and liquidity
Fed vice-chair says key issues for promoting non-bank sector stability are solvency and liquidity, and suggests policies that could be used to strengthen these areas
Fischer sets sights on shadow banks
Fed vice-chair says US regulators must do more to regulate non-banks, including improvements to wholesale funding, better data and regulation that evolves at the same pace as the industry
Lockhart backs ‘selective’ regulation of shadow banks
Atlanta Fed president argues for US authorities to ‘variably monitor and supervise’ all institutions with implications for financial stability, regardless of whether they are shadow banks
EBA proposes curbs on shadow bank exposures
Financial institutions will be expected to set their own limits, except in cases where information or internal processes are lacking; ‘fallback’ option may need adjusting, EBA admits
BoE agents shift perspective towards shadow banking
Role of central bank agents shifts towards financial stability and brings particular benefits in tracking the rise of non-bank finance, shows BoE quarterly bulletin
FSB-Iosco tweaks systemic shadow bank definition after criticism
Initial proposals for identifying systemic ‘non-bank non-insurers’ ran into criticism last year, with asset managers complaining rules put too much emphasis on size
Riksbank research gives alternative finance a cautious welcome
Greater diversity of funding sources stands to bring major benefits to the real sector, but financial stability could be at risk if new products are not well understood
Macro-prudential policies can ‘tame’ the financial sector, says ECB's Constâncio
Monetary policy should be used to control the price of goods and services not asset prices; macro-prudential policies can address financial imbalances in spite of dearth of shadow banking tools
Justin Lin on China, economic growth and the international monetary system
Former World Bank chief economist on why a multiple currency system could increase monetary instability, China should be wary of full capital reform and infrastructure investment will boost growth
Fed’s Tarullo casts doubt on counter-cyclical tools
Daniel Tarullo questions ability of macro-prudential tools to temper booms and busts, and calls for a new ‘prudential market regulation’ to tackle shadow banking risks
FSB definition of shadow banking paints 'incomplete picture', warns IMF paper
US and eurozone sectors similar in size according to working paper, which says other measures fail to account for ‘non-traditional banking activities carried out by the banks themselves'
Caruana sees leverage ‘evolving’ at global level
BIS general manager highlights risks beyond the banking sector, including an increase in corporate leverage in the wake of the financial crisis
PBoC closes in on liberalisation with deposit insurance plan
Central bank moves closer to deposit rate liberalisation with proposals for deposit insurance fund, aiming to improve ‘discipline’ in banking sector and encourage smaller banks to compete