The Reserve Bank’s 2012 Financial Stability Review looks at both overseas and Australian developments in the financial system.

It also provides some detailed insights into the operations of Australia’s shadow banking system (defined broadly as ‘credit intermediation involving entities and activities outside the regular banking system’).

In Australia, non-prudentially regulated institutions include registered financial corporations (RFCs), securitisation vehicles, money market funds and other investment funds. Together, these institutions currently account for currently around 15 per cent of financial system assets, down from 25 per cent in 2007.