Newsletter June 2012: IIF calls for customised regulation of shadow sector

WASHINGTON – A customised approach should be taken to the regulation of the disparate range of activities referred to as shadow banking, carefully considering each on its own merits to assess whether they could create systemic risks, rather than addressing them collectively. This is the central message of a new report* on the shadow -- or largely unregulated -- sector, issued in mid-June by the Institute of International Finance (IIF), a Washington-based trade association representing the biggest global firms.