Format:
Online-Ressource (19 p)
Edition:
Online-Ausg.
ISBN:
1463927231
,
9781463927233
Series Statement:
IMF Working Papers Working Paper No. 11/289
Content:
The present way of thinking about financial intermediation does not fully incorporate the rise of asset managers as a major source of funding for banks through the shadow banking system. Asset managers are dominant sources of demand for non-M2 types of money and serve as source collateral ?mines'' for the shadow banking system. Banks receive funding through the re-use of pledged collateral ?mined'' from asset managers. Accounting for this, the size of the shadow banking system in the U.S. may be up to $25 trillion at year-end 2007 and $18 trillion at year-end 2010, higher than earlier estimates. In terms of policy, regulators will need to consider the re-use of pledged collateral when defining bank leverage ratios. Also, given asset managers'' demand for non-M2 types of money, monitoring the shadow banking system will warrant closer attention well beyond the regulatory perimeter
Language:
English
DOI:
10.5089/9781463927233.001
URL:
Volltext
(IMF e-Library)
