This is the second report from the FSB Regional Consultative Group (RCG) for the Americas to consider shadow banking activities in the region. The exercise was designed to achieve a better understanding of the scope and impacts of shadow banking in the Americas, in particular in those countries that do not participate in the FSB shadow banking monitoring exercise. Three potential areas of emphasis were initially considered: non-bank credit intermediation (via finance companies, credit card companies, etc.), non-bank deposit-taking institutions, and the nature and size of shadow banking in international financial centers (IFCs). The report concludes that:
- banks dominate financial activities in the Americas; however, their share of financial assets has been declining from 2008 due to higher growth in other financial intermediaries (OFIs), and is lower on average than the share for banks in FSB member jurisdictions;
- the size of the OFI sector relative to GDP is heterogeneous across the jurisdictions included in the survey and is larger in economies with most developed financial sectors;
- the largest sub-sector of OFIs in the region is investment funds – money market funds and public and private funds;
- in several jurisdictions, the links between OFIs and domestic banks are significant;
- the offshore assets of the IFCs in the Americas are significant at USD 4.6 trillion, and the relative importance of various offshore financial entities (banks, insurers and private funds) varies by IFC.
This document has been prepared by the FSB RCG for the Americas and is being published to disseminate information to the public. The views expressed in the document are those of the RCG for the Americas and do not necessarily reflect those of the FSB.