The Financial Stability Board (FSB) has published its fourth annual Global Shadow Banking Monitoring Report.

The report is the fourth annual exercise by the FSB to identify the amount and sources of non-bank credit intermediation, building on the inaugural 2011 report which set out the annual monitoring approach.

The 2014 monitoring exercise covered 25 jurisdictions and the euro area as a whole. It uses data supplied by national jurisdictions based on the balance sheets of the financial system, as recorded in national financial accounts and complements it with other supervisory data and private sector data sources.

The main findings from the 2014 monitoring exercise include:

  • the broadest measure, referred to as the Monitoring Universe of Non-Bank Financial Intermediation (MUNFI), grew by $5 trillion in 2013 to reach $75 trillion;
  • globally MUNFI assets represent on average about 25% of total financial assets, roughly half of banking system assets, and 120% of GDP;
  • MUNFI assets grew by 7% in 2013 (adjusted for foreign exchange movements), driven in part by a general increase in valuation of global financial markets; and
  • the hedge funds sub-sector remains significantly underestimated in the FSB.

View FSB publishes Global Shadow Banking Monitoring report 2014, 30 October 2014