Recently, there has been increased global regulatory attention on shadow banking, an important source of alternative funding and liquidity to corporations, consumers, and other financial market participants.
Significant changes to bank prudential requirements in Basel III could lead to a need for increased non-bank funding to complement funding provided by banks. To assist regulators and market participants in monitoring activity and managing potential sources of risk, GFMA is identifying and prioritizing aspects of the shadow banking system that require the most significant attention.
