Between 15 and 25 trillion dollars in the United States «IMF» calls for improving the control over the banking system parallel

[yota691]

Between 15 and 25 trillion dollars in the United States «IMF» calls for improving the control over the banking system parallel

 

 

 

 

Date Published: Friday, October 3rd, 2014

The International Monetary Fund called for regulatory agencies in the world, the need to improve controls on the banking systems of parallel and non-official, after reaching a total volume of dealings more than 70 trillion dollars to prevent the formation of financial risks outside the boundaries of traditional financial control.

The news agency Bloomberg financial news for Gaston Geloz head of the unit of analysis in the global financial International Monetary Fund say «parallel banking system kicks off, when there are strict rules of banking, which leads to fraud on these rules».

This statement was made in a statement issued the day before yesterday in conjunction with the release of portions of the Global Financial Stability Report, where he is scheduled release of the report in full on October 8 current.

 

 

The report pointed out that the non-traditional lending operations also increases when interest rates fall and interest rates on deposits, and when investors are looking for higher returns, or when there is a request of the founders of the great «safe assets», such as insurance companies and pension funds.

 

It is noteworthy that «banking institutions parallel» include money market mutual funds, hedge funds and investment companies and financial intermediaries.

These institutions represent a threat to the broader financial system because it relies on short-term funding, which could lead to a forced sale of assets, which would lead to lower prices when investors want to get their money back within a short period.

In the summary of the report issued by the International Monetary Fund before yesterday, it was estimated the size of the parallel banking system, including between 15 and 25 trillion dollars in the United States.

 

[SnowGlobe7]

hummmmm 

https://www.ffiec.gov/bsa_aml_infobase/pages_manual/OLM_043.htm

[respectron]

10 trillion is a big gap to have room for crappy math. Lets see what numbers they come up with when they spin it according to market reactions. Do I know what I'm talking about..., probably not, just a guess.

[skeetdog]

Thanks Yota....The way it looks from here...they're goin' to have to be more convincing....