The FSB has created a system-wide monitoring framework to track developments in the shadow banking system with a view to identifying the build-up of systemic risks and initiating corrective actions where necessary.
The Global Shadow Banking Monitoring Report 2015 is the fifth annual report, reflecting data as of end-2014. It covers 26 jurisdictions and the euro area as a whole, representing about 80% of global GDP and 90% of global financial system assets. This year the FSB has introduced a new activity-based “economic function” approach in its annual monitoring. This approach is intended to help authorities narrow-down their focus to those parts of the non-bank financial sector where shadow banking risks may arise and may need appropriate policy responses to mitigate these risks. The new activity-based, narrow measure of shadow banking that may pose financial stability risks was $36 trillion in 2014, versus $35 trillion in 2013.