London
12 May 2017
Reporter: Mark Dugdale
Shadow banking on the up, says FSB
The value of the global ‘shadow banking’ market increased in 2015 to now stand at $34 trillion, according to the Financial Stability Board (FSB).

The Global Shadow Banking Monitoring Report 2016, released this week, revealed that the alternative financing market was equivalent to 13 percent of total financial system assets and 70 percent of the GDP of 28 covered jurisdictions.

The report is the FSB’s sixth annual study aimed at assessing global trends and risks in the shadow banking system, reflecting data up to the end of 2015.

There were a number of firsts in the 2016 report, including the addition of data from Belgium and the Cayman Islands, bringing the total number of jurisdictions to 28.

Another new feature of this report was the collection of data to measure interconnectedness among the bank and the non-bank financial sectors to assess the trends of short-term wholesale funding, including repos.

The FSB clarified repeatedly during its analysis that data availability needs to be improved. It did highlight that, on an aggregated basis, both banks’ credit exposures to and funding from ‘other financial intermediaries’ have continued to decline in 2015, although they remain above the levels before the financial crisis.

Mark Carney, chair of the FSB, said in his letter to the G20 finance ministers and central bank governors ahead of their Baden-Baden meeting that in completing the work under the Shadow Banking Roadmap, “the FSB has not identified new shadow banking risks that currently require additional regulatory action at global level".

“However, given that new forms of shadow banking activities are certain to develop in the future, FSB member authorities must maintain and continue to invest in an effective and ongoing programme of surveillance, data sharing and analysis so as to support judgements on any required regulatory response in the future.”

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
BNP Paribas: ESG investment seeing increased interest
25 May 2017 | London | Reporter: Stephanie Palmer
The survey report noted that 77 percent of asset owners already incorporate ESG aspects into their strategies
Nasdaq to support Chilean CSD in post-trade tech
25 May 2017 | Santiago | Reporter: Stephanie Palmer
Based on the Nasdaq Financial Framework the solution will replace Depósito Central de Valores’s existing core system
Funds need to keep an eye on BEPS negotiations
24 May 2017 | London | Reporter: Becky Butcher
Fund participants were encouraged at Guernsey’s Fund Forum to pay close attention to negotiations over base erosion and profit sharing (BEPS) rules
Northern Trust expands UAE operations
24 May 2017 | Abu Dhabi | Reporter: Stephanie Palmer
Northern Trust has opened a new branch office in Abu Dhabi, as part of a continuing focus on business in the UAE
R3 raises record funds for DLT development
24 May 2017 | London | Reporter: Stephanie Palmer
The R3 group has raised $107 million in two tranches of fundraising, securing the largest ever investment in distributed ledger technology to date
Promotions abound at Interstrust in Jersey
24 May 2017 | Jersey | Reporter: Stephanie Palmer
Intertrust in Jersey has made a spate of promotions, including elevating Sherin Sugeeswaran to the role of associate director in the fund services team
RSRCHXchange boosts research offering with data consumption partnership
23 May 2017 | London | Reporter: Stephanie Palmer
Institutional research marketplace RSRCHXchange has partnered with corporate access management solution provider CorpAxe in order to make research consumption data available to the buy side
More news