Millennium Post

Global shadow banking assets touch $75 trillion

Marking a substantial increase, global shadow banking assets climbed by $5 trillion to $75 trillion last year, with euro area and the United States accounting for one-third of the total, says a report.

In its latest report, the Financial Stability Board (FSB) also said these assets account for about 25 per cent of the total financial assets.

Broadly, shadow banking refers to credit intermediation involving entities and activities outside of the regular banking system.

The Monitoring Universe of Non-Bank Financial Intermediation (MUNFI), grew by $5 trillion in 2013 to reach $75 trillion, FSB said. MUNFI is based on the financial assets of Other Financial Intermediaries (OFIs) and captures all non-bank financial intermediation where shadow banking-related risks to the financial system might potentially arise.
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