EBA has published its final guidelines on limiting institutions’ exposures under the CRR to entities that carry out bank-like activities outside a regulated framework. The guidelines allow EU institutions to set internal limits for their exposures to shadow banking entities to address, in a proportionate way, the risks that these exposures pose to the EU banking sector. The guidelines will apply from 1 January 2017. EBA published an accompanying report on the exposures of a sample of EU institutions to shadow banking entities and the impact of setting limits on these exposures. (Source: EBA Finalises Guidelines on Shadow Banking Exposures)