Paul Tucker has proposed 10 specific policy recommendations for addressing the risks to financial stability posed by shadow banking. In a speech, he stressed that shadow banking has many forms, and is not the same as the non-bank financial sector generally. His recommendations look at possible changes for:

  • shadow banks that are really part of banks;
  • banks' provision of committed lines of credit to independent shadow banks;
  • money funds;
  • securities dealers and finance companies;
  • securities dealers and the rehypothecation of client assets; and
  • securities lending, repo and collateralised-financing markets.

(Source: BoE Speaks on Shadow Banking)