AIMA

The Alternative Investment Management Association

Alternative Investment Management Association Representing the global hedge fund industry

International Shadow Banking

The G20 instructed the Financial Stability Board (FSB) to develop recommendations to strengthen the oversight and regulation of the shadow banking system. After a consultation conducted in November 2012, the FSB published its policy recommendations in August 2013.

The FSB recommendations are contained within three reports and focus on five specific areas in which policies are needed to mitigate the potential systemic risks associated with shadow banking:

(i) to mitigate the spill-over effect between the regular banking system and the shadow banking system;

(ii) to reduce the susceptibility of money market funds (MMFs) to "runs";

(iii) to assess and align the incentives associated with securitisation;

(iv) to dampen risks and pro-cyclical incentives associated with securities financing transactions such as repos and securities lending that may exacerbate funding strains in times of market stress; and

(v) to assess and mitigate systemic risks posed by other shadow banking entities and activities.

These are now subject to respective national implementation.


Key policy documents

FSB overview of policy recommendations (August 2013)

FSB Policy framework for strengthening oversight and regulation of Shadow Banking entities (August 2013)

FSB Policy framework for addressing Shadow Banking risks in securities lending and repos (29 August 2013)


Consultation documents

FSB consultation paper - integrated overview of policy recommendations (November 2012)

FSB consultation paper - policy framework for oversight and regulation of shadow banking entities (November 2012)

FSB consultation paper - policy framework for addressing shadow banking risks in securities lending and Repos (November 2012)

Shadow Banking: scoping the issues (April 2011)


AIMA documents

Response to FSB consultation paper - Strengthening Oversight and Regulation of Shadow Banking – Policy Framework for Addressing Shadow Banking Risks in Securities Lending and Repos (November 2013)

Summary - Developments in the shadow banking debate (October 2013)

Response to FSB consultation paper - initial integrated set of recommendations to strengthen oversight and regulation of shadow banking (January 2013)

Response to FSB consultation - Shadow Banking: scoping the issues (May 2011)


Other documents

Shadow Banking: Addressing new sources of risk in the financial sector (September 2013)

Shadow Banking: Strengthening Oversight and Regulation - Recommendations of the FSB (October 2011)

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    1. EU Asset Management Regulation
      1. AIFMD
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      4. UCITS
        1. ETFs and Structured UCITS
      5. Venture Capital
    2. US Hedge Fund Adviser Regulations
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