FSB takes next steps towards shadow banking regulation

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The Financial Stability Board (FSB) has released a number of recommendations aimed at delivering effective regulation of the shadow banking sector. The FSB estimated the sector grew to approximately $67 trillion in the 26 jurisdictions monitored in 2011.

A consultative document, published on November 18, set out a number of recommendations across specific areas the FSB identified in a report in October 2011. These focused on spill-overs from the regular banking sector, mitigating systemic risks

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