Last summer the Financial Stability Board (FSB) published a high-level policy framework for shadow banking entities. The framework focuses on the underlying economic functions of non-bank financial entities instead of their legal forms, and set out overarching principles that supervisors should adhere to in their oversight of non-bank financial entities that are identified as posing shadow banking risks that threaten financial stability.

The FSB has now launched a peer review on the implementation of its policy framework. The objective of the review is to evaluate the progress made by FSB member jurisdictions in implementing the principles – in particular, to assess shadow banking entities based on economic functions, to adopt policy tools if necessary to mitigate any identified financial stability risks, and to participate in the FSB information-sharing process.

The FSB invites feedback from financial institutions, industry and consumer associations as well as other stakeholders. The deadline for feedback is 24 July 2015.

View FSB launches and invites feedback on its peer review on implementation of the FSB policy framework for shadow banking entities, 2 July 2015