Shadow banking grows to US$67tr

The shadow banking industry has grown to about US$67 trillion, US$6 trillion bigger than previously thought, leading global regulators to seek more oversight of financial transactions outside their traditional jurisdiction.

The size of the shadow banking system, which includes the activities of money market funds, monoline insurers and off-balance sheet investment vehicles, "can create systemic risks" and "amplify market reactions when market liquidity is scarce", the Financial Stability Board (FSB) said in a report, which used more data than last year's probe into the sector.

via Business feed http://www.scmp.com/business/banking-finance/article/1086407/shadow-banking-grows-us67tr