Shadow Banking - INREV response to EBA shadow banking consultation paper

In a response to the EBA’s consultation paper on Shadow Banking filed on 18 June, INREV argued against the proposal to include all AIFs in the definition of shadow banking.

Building on work carried out by the Financial Stability Board, the European Banking Authority (EBA) is creating a set of policy recommendations and proposes to define shadow banks as entities which present sufficient unknown risks that it is justifiable to restrict the exposure of mainstream banks to that part of the financial system. These include activities carried out by many in the asset management industry, including real estate investment funds. The EBA’s consultation paper suggests that all AIFs should be treated as shadow banking entities.