Global Shadow Banking Monitoring Report 2013

by Sabrina I. Pacifici on December 1, 2013

Financial Stability Board (FSB) published its third annual Global Shadow Banking Monitoring Report: “The report includes data from 25 jurisdictions and the euro area as a whole; these jurisdictions represent about 80% of global GDP and 90% of global financial system assets. For the first time the report also incorporates estimates from a hedge fund survey by the International Organization of Securities Commissions (IOSCO). The main findings of the FSB report are:

  • On a broad estimate, the assets of non-bank financial intermediaries (excluding those of insurance companies, pension funds and public financial institutions) grew by $5 trillion in 2012 to reach $71 trillion
  • Non-bank financial intermediaries represent on average about 24% of total financial  assets, and are equivalent to about half of banking system assets and 117% of  GDP. These patterns have been relatively stable since the crisis…
  • In addition to the broad estimate of the size of non-bank financial intermediaries, this report provides a first estimate of assets that more closely relate to shadow banking activity in 20 jurisdictions for which more granular data on non-bank financial intermediaries are available. This narrow estimate filters out non-bank financial activities that have no direct relation to credit intermediation or that are prudentially consolidated into banking groups. Using these more granular data  produces for these 20 jurisdictions a narrower estimate of $35 trillion, down from $55 trillion using the broad basis. Using this narrowed-down estimate, the growth rate of non-bank financial intermediaries for this smaller sample was 2.9% in 2012.”

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