Shadow banking breaks $80trn mark
16 November 2015 Basel
Image: Shutterstock
The Financial Stability Board (FSB) valued the shadow banking industry at $80 trillion in 2014, up from $78 trillion 2013.
The new figures were collated from data from 20 jurisdictions and the eurozone area.
While researching for this report, the FSB introduced a new activity-based ‘economic function’ approach in its annual monitoring this year.
This narrowed the focus to those parts of the non-bank financial sector where shadow banking policy changes may be needed to mitigate risks.
The first results of this approach highlight that the new activity-based, narrow measure of shadow banking grew by $1.1 trillion since 2013 to total $36 trillion in 2014.
This is equivalent to about 30 percent of the overall non-bank financial sector assets and 60 percent of the GDP of the 26 participating jurisdictions.
The FSB’s finding were presented to the G-20 Summit this weeks as part of its role as advisor on banking reform.
Mark Carney, chair of the FSB, said: “Non-bank financing is a welcome additional source of credit to the real economy.”
“The FSB’s efforts to transform shadow banking into resilient market-based finance, through enhanced vigilance and mitigating financial stability risks, will help facilitate sustainable economic growth.”
The new figures were collated from data from 20 jurisdictions and the eurozone area.
While researching for this report, the FSB introduced a new activity-based ‘economic function’ approach in its annual monitoring this year.
This narrowed the focus to those parts of the non-bank financial sector where shadow banking policy changes may be needed to mitigate risks.
The first results of this approach highlight that the new activity-based, narrow measure of shadow banking grew by $1.1 trillion since 2013 to total $36 trillion in 2014.
This is equivalent to about 30 percent of the overall non-bank financial sector assets and 60 percent of the GDP of the 26 participating jurisdictions.
The FSB’s finding were presented to the G-20 Summit this weeks as part of its role as advisor on banking reform.
Mark Carney, chair of the FSB, said: “Non-bank financing is a welcome additional source of credit to the real economy.”
“The FSB’s efforts to transform shadow banking into resilient market-based finance, through enhanced vigilance and mitigating financial stability risks, will help facilitate sustainable economic growth.”
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