Transforming shadow banking into resilient market-based financing has been one of the core elements of the FSB’s regulatory reform agenda to address the fault lines that contributed to the global financial crisis and to build safer, more sustainable sources of financing for the real economy.

This document provides an overview of the FSB’s two-pronged strategy to deal with these fault lines to date: (i) the creation of a system-wide monitoring framework to track developments in the shadow banking system with a view to identifying the build-up of systemic risks and initiating corrective actions where necessary; and (ii) the development of policy measures in five areas where oversight and regulation needs to be strengthened to reduce excessive build-up of leverage, as well as maturity and liquidity mismatching in the system.

It also clarifies the next steps for 2015 through updating the actions and deadlines set by the G20 Leaders in their Roadmap annexed to the St Petersburg Summit Declaration in September 2013.