In addition, the Basel Committee, the European Commission, the Financial Stability Board, and the G20 (Shall we play “You Name the Financial Body?”) are pondering new rules on shadow banking, which is just big deal, increasing from $25 billion in 2002 to $60 billion in 2010. And it’s still rising.
It’s not just a U.S. issue. The top three regions affected by shadow banking are Europe, the U.S., and China. Furthermore, Japan, Canada, and Brazil also have notable shadow banking economies relative to their traditional banking economies.