Global shadow banking activities continue to grow or need to strengthen regulati
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The Financial Stability Board (FSB) said the growth of global bonds, real estate and money market funds has led to the continued growth of the global "shadow banking" sector. The shadow bank provided credit outside the regulated banking system, filling the market gap caused by the euro zone's banking sector lending.
Shadow bank may threaten financial stability, responsible for coordinating the G20 financial regulation FSB said that the "narrow" shadow banking activities in 2015 increased by 3.2% to 34.2 trillion US dollars. 2015 is the most recent year in which data are collected.
In addition to bond investment funds, the narrow shadow banking activities include repurchase and debt securitization markets, as well as hedge funds involved in credit operations.
FSB said in an annual report of 94 pages that some of the growth in the shadow banking sector was recorded in the eurozone, where banks were sluggish by bad loans and regulation, cutting lending.
The ratio of the narrow measure to the economic output of the country being monitored rose from 60% in 2011 to 69% in 2015, exceeding the overall growth rate. Shadow banking accounts for about 13% of the financial system assets.
The 2007-2009 financial crisis prompted FSB to monitor and propose rules to reduce risk in the field.
"This helps us to make judgments about the right policy response when we turn shadow banks into resilient market-based financing," said FSB Chairman Carney.
FSB will submit a more comprehensive assessment report to the G20 Summit in July to indicate whether more rules are needed.
** Pursuit of pension funds **
Of the $ 34 trillion shadow banks, about 65% are open fixed-income funds, real estate funds and money market funds. The size of these funds has increased by an average of about 10% over the past four years.
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