General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
March 05, 2018

FSB published the Global Shadow Banking Monitoring Report for 2017. The report presents results of the seventh annual monitoring exercise of FSB to assess global trends and risks from shadow banking activities. The monitoring exercise adopts an activity-based approach, focusing on the parts of the non-bank financial sector that perform economic functions giving rise to financial stability risks from shadow banking.

The report presents a comparative macro-mapping perspective of all sectors in the financial system, including central banks, banks, public financial institutions, insurance corporations, pension funds, other financial intermdiaries (OFIs), and financial auxiliaries. It assesses the interconnectedness between non-bank financial entities and banks, along with the interconnectedness among non-bank financial entities, based on the data collected for this monitoring exercise. The report also discusses the narrow measure based on the activities that certain non-bank financial entities undertake and classifies the activities into the five economic functions developed by FSB. Finally, the report assesses the potential risks posed by these entities and their activities. The key findings from the 2017 monitoring exercise are as follows:

  • The activity-based, narrow measure of shadow banking grew by 7.6% in 2016 to USD 45.2 trillion for the 29 jurisdictions. 
  • Collective investment vehicles with features that make them susceptible to runs, which represent 72% of the narrow measure, grew by 11% in 2016.
  • The assets of market intermediaries that depend on short-term funding or secured funding of client assets declined by 3%. These intermediaries accounted for 8% of the narrow measure by the end of 2016. 
  • The assets of non-bank financial entities engaged in loan provision that is dependent on short-term funding, such as finance companies, shrank by almost 4% in 2016, to 6% of the narrow measure. 
  • In 2016, the wider OFI aggregate, grew by 8% to USD 99 trillion in 21 jurisdictions and the euro area, faster than banks, insurance corporations, and pension funds. OFI assets now represent 30% of the financial assets, the highest level since at least 2002.

The 2017 monitoring exercise covers data up to the end of 2016 from 29 jurisdictions, including Luxembourg for the first time. These jurisdictions represent over 80% of the global GDP. For the first time, the report also assesses the involvement of non-bank financial entities in China in credit intermediation that may pose financial stability risks from shadow banking, such as maturity/liquidity mismatches and leverage. 

 

Related Links

Keywords: International, Banking, Shadow Banking, Financial Stability Risks, Monitoring, FSB

Related Insights
News

BCBS Finds Liquidity Risk Management Principles Remain Fit for Purpose

BCBS completed a review of its 2008 Principles for sound liquidity risk management and supervision. The review confirmed that the principles remain fit for purpose.

January 17, 2019 WebPage Regulatory News
News

MAS Guidelines on Risk Mitigation Requirements for OTC Derivatives

MAS published guidelines on risk mitigation requirements for non-centrally cleared over-the-counter (OTC) derivatives contracts.

January 17, 2019 WebPage Regulatory News
News

HKMA Urges Local Banks to Start Working on FRTB Implementation

HKMA announced that it plans to issue a consultation paper on the new market risk standard in the second quarter of 2019.

January 17, 2019 WebPage Regulatory News
News

EBA Finalizes Guidelines for High-Risk Exposures Under CRR

EBA published the final guidelines on the specification of types of exposures to be associated with high risk under the Capital Requirements Regulation (CRR). The guidelines are intended to facilitate a higher degree of comparability in terms of the current practices in identifying high-risk exposures.

January 17, 2019 WebPage Regulatory News
News

BoE Publishes the Schedule for Statistical Reporting for 2019

BoE published the updated schedule for statistical reporting for 2019. The reporting institutions use the online statistical data application (OSCA) to submit statistical data to BoE.

January 16, 2019 WebPage Regulatory News
News

PRA Delays Final Direction on Reporting of Private Securitizations

PRA and FCA have delayed the issuance of final direction, including the final template, on reporting of private securitizations, from January 15, 2019 to the end of January 2019.

January 15, 2019 WebPage Regulatory News
News

SNB Updates Forms on Supervisory Reporting for Banks

SNB published Version 1.7 of reporting forms (AUR_U, AUR_UEA, AUR_UES, AURH_U, AUR_K, AUR_KEA, and AURH_K) and the related documentation for supervisory reporting on an individual and consolidated basis.

January 15, 2019 WebPage Regulatory News
News

BCBS Finalizes Market Risk Capital Framework and Work Program for 2019

BCBS published the final framework for market risk capital requirements and its work program for 2019. Also published was an explanatory note to provide a non-technical description of the overall market risk framework, the changes that have been incorporated into in this version of the framework and impact of the framework.

January 14, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for January 2019

EBA published answers to 13 questions under the Single Rulebook question and answer (Q&A) updates for this week.

January 11, 2019 WebPage Regulatory News
News

PRA Proposes to Amend Supervisory Statement on Credit Risk Mitigation

PRA published the consultation paper CP1/19 that is proposing changes to the supervisory statement (SS17/13) on credit risk mitigation.

January 10, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2473