(8 March 2018 – Global) The Financial Stability Board’s (FSB) annual monitoring of shadow banking has included detailed data from China and Luxembourg for the first time which has resulted in growth of nearly 8 percent globally in the shadow banking sector.
According to the 2016 data, shadow banking accounted for 13 percent of global financial assets, or US$45tn on a conservative measure.
The inclusion of China and Luxembourg makes this report the most detailed yet, however China has initiated a crackdown on its shadow banking sector in recent years meaning this report, based on 2016 data may not be reflective of the current state.
The data come after the FSB said last year that it had “tamed” the most toxic parts of the industry, which was widely blamed for exacerbating the financial crises in 2008. Since then, the FSB has led reform to try to exercise more control over the sector.