G20 takes aim at shadow banking

 
Julian Harris
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THE GLOBAL financial regulator formed by the G20 has revealed its bid to take tighter control of the shadow banking sector.

The Financial Stability Board (FSB) said that it would seek to regulate the industry and thereby reduce systemic risk that could lead to another financial crisis.

“The objective is to ensure that shadow banking is subject to appropriate oversight and regulation to address bank-like risks to financial stability emerging outside the regular banking system,” said the FSB.