Shadow Banking (Green Paper)

The main focus of the Green Paper is quite rightly systemic risks as problems in the shadow banking sector can trigger banking crises and thus jeopardise the financial system. The term “shadow banking” is somewhat misleading, for many of these entities are already covered by existing Directives and Regulations. The obligation for entities to provide information should be tightened, since the existing data and statistics on the activities of shadow banking entities are insufficient. The legislator and not the supervisory authorities should determine the supervision concept for shadow banking.