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G20 Makes a Push for Regulation Over Shadow Banks by 2013

“* Big banks get more time to write “living wills”

* G20 sets deadline to reduce reliance on credit ratings

* New “shadow banks” rules ready by Sept. 2013

MEXICO CITY/LONDON, Nov 5 (Reuters) – International watchdogs, working to tighten-up global regulation after the financial crisis, are moving ahead with plans to extend their reach to “shadow banks” such as money-market funds that handle trillions of dollars in short-term investments.

Policymakers have already tightened regulation for mainstream banks but are keen to stop higher-risk activities shifting to less supervised areas such as off-balance sheet units, hedge funds and money-market funds, which contributed to the crisis.

This is a clear signal there will be no let up for the financial sector despite warnings that introducing too many rules could hinder global economic recovery.”

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