Shadow banking: what regulators must do

Author: Gemma Varriale | Published: 2 May 2012

Key industry figures have said that the highly complex universe of shadow banking must be better understood before regulation can be developed effectively.

“I would say monitor widely and regulate narrowly when the time comes,” said Leena Mörttinen, head of group European affairs at Nordea Bank.

Mörttinen added that higher capital requirements will have a major impact on the way that banks function.

“I would suspect that it will also change the way the rest of the...