IRSG response to FSB's integrated policy recommendations on Shadow Banking

Published 14/01/2013

The IRSG response to the FSB's integrated policy recommendations on strengthening the oversight and regulation of shadow banking focuses on issues relating to Money Market Funds, securities lending and repo and securitization.

In general, the IRSG is supportive of the FSB's recommendations and welcomes the reocgnition that market finance plays an important role in the wider economy by offering alternative finance solutions to banks. However, the IRSG does not support the mandatory conversion of CNAV funds to VNAVs. We believe that alternative measures that strengthen the resilience of these funds while preserving their function in the wider economy would be preferable.

You may also be interested in the IRSG's response to the European Commission's Green Paper on Shadow Banking.