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Out of the shadows? The global response to 'Shadow Banking'

Copyright © 2025 LexisNexis

Published on: 19 December 2012

Published by a LexisNexis Financial Services expert

Table of contents

Developing a regulatory framework
What does 'shadow banking' mean?
How does shadow banking assist the economy?
What are the risks associated with shadow banking?
What are MMFs?
Why are regulators considering greater regulation of MMFs?
The new regulatory approach to shadow banking

Article summary

This News Analysis piece introduces shadow banking and why it is being mooted as an area ready for regulation. It discusses the role of the Financial Stability Board, G20 and other supra national bodies in driving this regulation closer. The area of Money Market Funds (MMFs) is particularly relevant to shadow banking as they make up a significant part of this segment and are integral to the provision of short term institutional and sovereign lending and liquidity. As such they are at the heart of financial stability.

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