IMF flags up uneven application of shadow banking regulations

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Uneven implementation of shadow-banking regulations agreed by the Financial Stability Board (FSB) could cause risks to spread across national borders, the IMF warns in its upcoming Global Financial Stability Report.

Regulatory tightening in one country "might lead to migration of activities to others with laxer rules," the IMF notes in a chapter on shadow banking, released ahead of the report.

"International regulatory cooperation is crucial. Risks are more likely to increase when regulatory ini

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