Based on this assessment, authorities should narrow down their focus to those types of non-bank credit intermediation that have the potential to pose systemic risks, by focusing in particular on those involving the four key risk factors: (i) maturity transformation; (ii) liquidity transformation; (iii) imperfect credit risk transfer; and/or (iv) leverage.
The report also describes the work plans for the five working streams, which focus on: (i) banks’ interactions with shadow banking entities (indirect regulation); (ii) money market funds (MMFs); (iii) “other” shadow banking entities; (iv) securitisation; and (v) securities lending and repos.
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© Financial Stability Board
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