Sat, Oct 10, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

European Commission, IMF officials weigh in on shadow banking

Monday, September 16, 2013

Bailey McCann, Opalesque New York:

International bodies are weighing in on shadow banking. Last week, the European Commission released its roadmap for how it plans to handle risk from shadow banking activities and today, an IMF official in China said that shadow banking in China will not cause a collapse of that economy despite risks. Both moves may bolster the alternatives industry as more and more firms enter the speciality finance space.

The European Commission has plans to reform how it monitors shadow banking activities. The roadmap is far-reaching and detailed in terms of how it sees the space and what it plans to do. The plan takes a fivefold approach to regulating shadow banking, making for a process that will be lengthy and heavily lobbied. The Commission has valued the global shadow banking industry in 2010 at €51 trillion, and says that its goal in regulation is to build investor trust and confidence.

The five point plan came a week after the Financial Stability Board issued its Final Policy Recommendations and reaffirms many of those definitions and guidelines. However, shortly after the plan was introduced several EU member states including Germany expressed dissatisfaction with the plan saying the proposed regulations didn't go far enough. Presumably, only when all liquidity is gone from the markets will participants be sufficiently supervised.

Law firm Clifford Chance ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. U.S. hedge funds prepare for worst finish this year since 2008[more]

    Komfie Manalo, Opalesque Asia: U.S.-focused hedge funds are preparing for their worst year since the 2008 global financial crisis, following a series of letdown including the market sell-off in August and the sell-off in healthcare and biotechnology sectors last month, reported

  2. Investing - AQR Capital and Renaissance Technologies raise stakes in Southwest Airlines[more]

    From In the previous part of this series, we saw how institutional investors played Southwest Airlines (LUV) in 2Q15. Now let’s move on to the trades executed by key hedge funds in Southwest Airlines over the same period. … Most of the hedge funds that had significant exposu

  3. Manager Profile - Pimco alternative funds flourish as 30-year bond rally fades[more]

    From Inside Pacific Investment Management Co., the bond behemoth that lost two chief investment officers last year and saw almost $500 billion of client money leave, a hidden profit engine is easing some of the pain. For more than a decade, Newport Beach, California-based Pimco has qu

  4. Niche Investing - Art investment funds: Attracting institutional and other new investors[more]

    From The Deloitte/ArtTactic Art and Finance Report 2014 (the "Art and Finance Report") noted that the "global art investment fund market was estimated to be worth at least $1.26 billion in the first half of 2014." This seems almost inconsequential when juxtaposed with the $54 billion of

  5. DoubleLine’s Jeffrey Gundlach warns of another round of market shakedown[more]

    Komfie Manalo, Opalesque Asia: DoubleLine Capital co-founder Jeffrey Gundlach is painting a bleak future as he warned that the U.S. equity market and other risk markets, such as high-yield "junk" bonds, are facing another round of selling pressure. Gundlach said in an interview with