Overview

Shadow banking entities – also known as nonbank financial intermediaries (NBFIs) – provide services similar to traditional banks but operate outside the regular banking supervisory framework. This means they may not be subject to the same regulatory scrutiny, capital requirements, or risk management practices, which can lead to excessive risk-taking and financial stability impacts. This eCourse describes the activities of NBFIs in detail as well as the regulatory approach to managing the risks associated with them.

Objective

On completion of this course, you will be able to:
- Define shadow banking and identify how it can give rise to “bank-like” risks
- Recognize the key elements of the regulatory approach to shadow banking based on the Financial Stability Board’s (FSB's) policy framework
- Identify the key events in the evolution of shadow banking and the ongoing issues and challenges from a regulatory perspective

Content

Shadow Banking & NBFIs
Topic 1: Overview of Shadow Banking
Topic 2: Regulatory Approach to Shadow Banking
Topic 3: Current State of Shadow Banking