Reforms to non-bank financial intermediation (formerly referred to as shadow banking) is one of the FSB’s priority areas for implementation monitoring. The initial set of reforms were outlined in the FSB’s framework for strengthening the oversight and regulation of non-bank entities, which was endorsed by the G20 in 2013. Those reforms focus on five key areas where the FSB has been coordinating and contributing to the development of policies, namely:

  1. mitigating spill-overs between banks and the NBFI sector;

  2. reducing the susceptibility of money market funds (MMFs) to “runs”;

  3. improving transparency and aligning incentives associated with securitisation;

  4. dampening procyclicality and financial stability risks associated with securities financing transactions; and

  5. mitigating systemic risks posed by other non-bank financial entities and activities.

Since then, the FSB and standard-setting bodies have developed additional policy recommendations in some of these areas. 

Relevant international standards
Policy Relevant policy documents for monitoring Organisation


Mitigating risks in banks’ interactions with non-bank financial entities. 

Higher risk-weights for banks’ exposures to unregulated financial institutions (2019)

Guidelines: Identification and management of step-in-risk (2017)

Supervisory framework for measuring and controlling large exposures (2014)

Capital requirements for banks’ equity investments in funds (2013)

Basel Committee on Banking Supervision (BCBS)


Reducing the susceptibility of MMFs to “runs”. 

Policy proposals to enhance MMF resilience (FSB, 2021)

Policy Recommendations for MMFs (IOSCO, 2012)

FSB and International Organization of Securities Commissions (IOSCO)


Policy measures to improve transparency and align incentives in securitisation. 

Criteria for identifying simple, transparent and comparable securitisations (BCBS and IOSCO, 2015)

Revisions to the securitisation framework (BCBS, 2014), which are now integrated into the consolidated Basel Framework

Global Developments in Securitisation Regulation (IOSCO, 2012), especially the recommendations on incentive alignment approaches for securitisation



Policy recommendations to dampen procyclicality and financial stability risks in securities financing transactions. 

Regulatory framework for haircuts on non-centrally cleared securities financing transactions (2015; updated in 2019 and 2020)

Policy Framework for Addressing Shadow Banking Risks in Securities Lending and Repos (2013)



Assessing and mitigating systemic risks posed by other non-bank financial intermediation entities and activities. 

Recommendations for Liquidity Risk Management for Collective Investment Schemes (IOSCO, 2018)

Policy Recommendations to Address Structural Vulnerabilities from Asset Management Activities (FSB, 2017)

Policy Framework for Strengthening Oversight and Regulation of Shadow Banking Entities (FSB, 2013)


Monitoring and reporting on implementation of NBFI reforms is carried out by the FSB and by the standard-setting bodies for their respective areas, with the main findings presented in the FSB Annual Report.

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