Fitch Ratings says shadow banking is once again a looming threat to the financial system.
Driven by increased bank regulation, low rates, favorable economics and the growth of fintech, global shadow banking assets reached $52 trillion as of fiscal year-end 2017, up 8.5% year over year, the report said, citing the G-20 Financial Stability Board. That represents 13.5% of total financial assets, which is a 73.3% increase from December 31, 2010, according to the Financial Stability Board.
The US had almost $14.9 trillion of these assets, or almost 29% of the global total, which Fitch says is mostly flat since 2010. However China, with a smaller slice at $8.3 trillion, has seen a compound annual growth rate of almost 60% in shadow banking since 2010, according to the report.