Dividing (and Conquering?) Shadows: FSB and US Approaches to Shadow Banking at the Dawn of 2014

10 Pages Posted: 10 Jan 2014

See all articles by Edward Greene

Edward Greene

Cleary Gottlieb Steen & Hamilton LLP

Elizabeth Broomfield

Cleary Gottlieb Steen & Hamilton LLP

Date Written: January 8, 2014

Abstract

This article addresses how the approaches of the FSB and the US to regulating “shadow banking” entities and activities has evolved and the consequences of their strategies. We note that the concept of “shadow banking activities” has, at both the global and national level, focused to an increasing extent on the risks associated with short-term financing. However, the regulatory approach with respect to shadow banking entities has diverged at the global and national level.

We conclude that activities-based reforms are a more promising means of addressing shadow banking, and, where entity-specific reforms are necessary, the US would benefit from the FSB’s sector-based approach as well as the FSB’s policy of relying on existing regulatory bodies with relevant sector-expertise.

Suggested Citation

Greene, Edward and Broomfield, Elizabeth, Dividing (and Conquering?) Shadows: FSB and US Approaches to Shadow Banking at the Dawn of 2014 (January 8, 2014). Journal of Banking and Finance, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2376551

Edward Greene

Cleary Gottlieb Steen & Hamilton LLP ( email )

One Liberty Plaza
New York, NY 10006
United States

HOME PAGE: http://Cgsh.com

Elizabeth Broomfield (Contact Author)

Cleary Gottlieb Steen & Hamilton LLP ( email )

One Liberty Plaza
New York, NY 10006
United States

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