Abstract
This document sets out the final policy framework to address shadow banking risks posed by non-bank financial entities other than money market funds (MMFs) (“other shadow banking entities”).It is based on a careful consideration of more than 50 responses received on the Consultative Document published on 18 November, which set out the high-level policy framework that would allow authorities to: detect and assess the sources of shadow banking risks in the non-bank financial space from a financial stability perspective; and apply appropriate policy measures if necessary to mitigate any financial stability risks identified. In general, the respondents supported the FSB’s efforts to address the potential risks posed by other shadow banking entities based on the five economic functions, but asked for closer coordination among the different shadow banking workstreams as well as with other regulatory initiatives, and for clearer definitions and more precision for the policy toolkits for the five economic functions before they could be applied.