FSB outlines road to shadow banking regulation

shadow

The Financial Stability Board (FSB) on Tuesday attempted to shed some light on proposals to strengthen the oversight of the shadow banking system.

The note, titled Shadow Banking: Scoping the Issues, said the proposed regulatory response to shadow banking will likely fit within one of four categories.

The first option could be to look at banks' interactions with shadow banking entities, a form of indirect regulation. "By regulating banks' interactions with shadow banking entities, the spillover

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