Green Paper on the shadow banking system
26th March 2012The Commission wrote a Green Paper on 19th March on non-banking credit activities or "the shadow banking system". The shadow banking system accomplishes major functions in the financial system. For example it creates additional sources of funding and offers investors solutions in place of bank deposits. However it may also present potential threats to long term financial stability. The aim of the Green Paper is to review the present situation and to put forward ideas on the issue in order to undertake a wider consultation amongst those involved. These will then be invited to answer the consultation before June 1st. A conference on the shadow banking system will be organised in Brussels on 27th April.
Read