Shadow banking consists of entities conducting financial intermediation activities outside of the regulated banking system. The Financial Stability Board says the shadow banking was the main cause of the last global financial crisis.
The Bank for International Settlements (BIS) points out that even if the global economy successfully overcomes the existing threats in the short term, it could still find itself in trouble.
The IMF warned in the Global Financial Stability Report and Fiscal Monitor against threats challenging financial stability worldwide. The reason is that short-term risk has increased noticeably over the past six months.