''Can shadow banking be addressed without the balance sheet of the sovereign?''

from voxeu.....

"The shadow banking system  – the name given to the financial infrastructure that exists outside the regulator’s remit – has been much in the news since the global financial crisis (see recent Vox contributions Acharya 2011 and Acharya et al 2011). Much thought has gone into what the best ways are to reform the shadow banking system. Recently the Financial Stability Board has issued a set of recommendations on the topic. But, as with other financial sector issues, it is important to have a good diagnosis as to what makes the shadow banking system of systemic importance and how these causes relate to the best necessary reforms"...........READ MORE