Shadow Banking and Regional Coordination in Asia: Risks, Challenges and Benefits

20 Pages Posted: 23 Mar 2017 Last revised: 24 Mar 2017

See all articles by Andrew Godwin

Andrew Godwin

Melbourne Law School

Ian Ramsay

Melbourne Law School - University of Melbourne

Drossos Stamboulakis

USC Law School - University of the Sunshine Coast; Melbourne Law School - University of Melbourne

Date Written: March 22, 2017

Abstract

Concerns arising out of the systemic risks associated with ‘shadow banking’ are inherently global in nature as a result of the interconnectedness of shadow banking activities across different jurisdictions and markets. Yet, despite ongoing efforts, it remains very difficult to achieve global coordination in the regulation and supervision of shadow banking. This paper examines the efforts that have been made, and the challenges that have been encountered, in achieving a coordinated response to shadow banking in Asia. The paper first provides an overview of shadow banking and the risks associated with it, canvassing some key responses proposed or taken with respect to shadow banking, including the work of the Financial Stability Board and the approaches in the European Union and the United States. It then focuses on the specific needs and risks inherent in the Asian region. The paper concludes by putting forward the case for a greater degree of regional coordination and makes a range of general and specific policy recommendations for this purpose, including the use of an existing regional body to drive coordination efforts and proposals.

Suggested Citation

Godwin, Andrew and Ramsay, Ian and Stamboulakis, Drossos, Shadow Banking and Regional Coordination in Asia: Risks, Challenges and Benefits (March 22, 2017). Australian Journal of Asian Law, Vol. 17, No. 2, article 4, 2016. Available at SSRN: https://ssrn.com/abstract=2939389

Andrew Godwin (Contact Author)

Melbourne Law School ( email )

185 Pelham Street
Carlton, Victoria 3053
Australia

Ian Ramsay

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria 3010
Australia
+61 3 8344 5332 (Phone)

HOME PAGE: http://law.unimelb.edu.au/about/staff/ian-ramsay

Drossos Stamboulakis

USC Law School - University of the Sunshine Coast ( email )

90 Sippy Downs Dr
Sippy Downs QLD, Queensland 4556
Australia

Melbourne Law School - University of Melbourne ( email )

University Square
185 Pelham Street, Carlton
Victoria, Victoria
Australia

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