FSB, G-20 put shadow banking at US$80,000b in 2014

Mark Carney, governor of the Bank of England and chairman of the Financial Stability Board (FSB), speaks during a news conference after the board's plenary meeting at the Bank of England in London, U.K., on Monday, on March 31, 2014. 

PHOTO: BLOOMBERG

NOV 13, 20157:06 AM

[ZURICH] The value of unregulated "shadow banking" rose to some US$80,000 billion (S$113,485 billion) last year, according to a report by the Financial Stability Board (FSB), which advises G-20 states on banking reform.

The report, issued ahead of the upcoming G-20s summit in Antalya, said shadow banking transactions not subject to regulatory oversight grew by US$2,000 billion across 2014.

The FSB, which advises G-20 countries on banking reform and was set up six years ago after the implosion of Lehman Brothers, publishes annual reports into the parallel banking system under its remit to promote international financial stability.

The Switzerland-based body, chaired by chairman Mark Carney, governor of the Bank of England, is also tasked with identifying potential weakpoints in the global financial system.

AFP