Shadow banking may sound like the demon brainchild of Dr. Evil and Gordon Gekko, but about half of the banking system’s assets are in this mostly unregulated realm of finance. And global regulators at the Financial Stability Board recently looked at taming that realm.
Liquidity buffers, leverage limits and standards on how to make calculations were among the FSB’s suggestions, AFP reported Sunday. The largest shadow banking sectors are in the U.S. and the Eurozone, but systems in other....