Shadow Casting

We are delighted that Center for Financial Stability (CFS) metrics are providing a standard to measure “shadow banking” or more aptly “market finance.”

Our analytics were featured in The “CFA Institute Magazine” July/August cover story, “Shadow Casting” by Maha Khan Phillips.

In the article, Ms. Khan Phillips questions if the financial industry should be worried about the potential growth in shadow banking.  She also investigates if regulators are being overzealous, or not zealous enough.

At CFS, we know market finance is undoubtedly compromising liquidity in international financial markets. According to CFS data, shadow banking is down a stunning 46% in real terms since it’s peak in 2008.

CFS believes that regulation has gone too far. There are very significant liquidity concerns in the market and regulation will make it worse.

To view the full article:
http://www.cfapubs.org/doi/pdf/10.2469/cfm.v26.n4.8

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