Bank of England Governor Mark Carney speaks during an inflation report news conference at the Bank of England in London, Britain November 5, 2015. REUTERS/Jonathan Brady/pool
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The value of non-bank "shadow banking" rose to some $80 trillion last year, according to a report Thursday by the Financial Stability Board, which advises G-20 states on banking reform and oversees regulation of the global financial system.The FSB, which works in conjunction with national and international financial regulators, estimated that under the new, activity-based, narrow measure of shadow banking, the sector was worth $36 trillion in 2014, from $35 trillion in 2013 – equivalent to some 30 percent of overall non-bank financial sector assets and 60 percent of the GDP of the 26 participating jurisdictions.The FSB's efforts to transform shadow banking into resilient market-based finance, through enhanced vigilance and mitigating financial stability risks, will help facilitate sustainable economic growth".But at the same time he stressed the FSB needed to be vigilant in looking to transform shadow banking into a robust source of market finance and at a level of risk which would not destabilise the financial system.
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