It is very much clear that the regulators are not going to understand the complex issue of shadow banking and thus, it is very important that new changes should be brought into this issue. This is the view of Financial Services Authority that is FSA. According to the policy makers, there is opaqueness in the shadow banking system whose worth is 60 trillion dollars. It is almost like a web that is inclusive of security lending, money market funds etc and is operative along with the lenders of the mainstream who are called as a contributor to the financial crisis.

The lenders from the top 20 economies of the world that is G20 have given a call to their regulatory task force which is Financial Services Authority that is FSA only that it should come up with newer rules by the ending of this year. From the past the years, the ill effects of shadow banking was being noticed but nothing actually was being done in this regard.

In a lecture given at the Cass Business School, Lord Turner, Chairman, FSA had said that it is now high time some important changes must be brought into this matter. He was of the view that any system which is so much complex, is sure going to create some or the other kind of misunderstanding. If any strong action is not taken, then this small action is also going to go in vain.

He further added that financial stability is facing a risk because of shadow banking as it is quite in synch with the core banking system. It is very important that the regulators should play safe against this system which is very complex in nature because of its strong connectivity with the financial system.

The measures that could be taken can be high levels of capital in the banking system, making sure that the lenders hold bail-enabled debts as well as requirement of capital, for example, minimum amount of initial margin in the contracts of the individuals. Reduce your financial pressure apply with text loans and get cash help in quick time.

The work of regulation of the shadow banking is not less than a challenge, there is required a complete and proper understanding of what shadow banking is and how much and in what manner has it given its contribution of the financial instability that has come into the economy of the country in the past. It is not parallel but properly connected to the banking system of the country.

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