The shadow banking industry grew by $5 trillion to about $75 trillion worldwide in 2013, driven by lenders seeking to skirt regulations and investors searching for yield amid record low interest rates.
The size of the shadow banking system, which includes hedge funds, real estate investment trusts and off-balance sheet investment vehicles, is about 120 percent of global gross domestic product, or a quarter of total financial assets, according to a report published by the Financial Stability Board today.
Shadow banking “tends to take off when strict banking regulations are in place, when real interest rates and yield spreads are ...
Learn more about Bloomberg Law or Log In to keep reading:
Learn About Bloomberg Law
AI-powered legal analytics, workflow tools and premium legal & business news.
Already a subscriber?
Log in to keep reading or access research tools.