Views on improving the integrity of global capital markets
26 August 2015

Shadow Banking: Friend or Foe?

“Misnamed and misunderstood, shadow banking has a highly visible (and vital) function. But does it also pose a systemic threat?”

That’s how the cover story of the July/August issue of CFA Institute Magazine, a publication for investment professionals, begins.

The “Shadow Casting” story sheds light on a shift that is occurring in the way our industry views shadow banking, and it coincides with a new report on the issue from CFA Institute, which is informed by findings of a CFA Institute member survey.

So it’s apt that the story ends with a quote from the author of our shadow banking report, Rhodri Preece, CFA, head of capital markets policy in our Europe, Middle East, and Africa region, providing our CFA Institute perspective. “The focus has shifted from systemic risks to the role that shadow banking can play in solving the lack of access to capital in the Eurozone,” he says. “But safeguards are needed. It’s about making sure that the right policies are in place.”

The July/August magazine also features a column by Kurt Schacht, JD, CFA, managing director of Standards and Advocacy, that asks, “Do Asset Managers Pose a Systemic Risk?,” along with articles on “Improving Compensation Disclosure” and “High-Frequency Trading: Beyond the Hype.”

For more on the work of the Standards and Advocacy team, follow us on Twitter, @MarketIntegrity

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Illustration: Kelly Alder

About the Author(s)
Rebecca Arrington

Rebecca Arrington is a communications specialist at CFA Institute.

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