A decade on, individual responsibility is returning. Three Priorities to Move Forward in the Decade Ahead There are three priorities to maximise the benefit of the progress made over the past decade. Dynamic Implementation Full, timely and consistent implementation of G20 reforms remains essential to deliver a financial system that supports growth in the short, medium and long term. We must finish the job to build the level of resilience our citizens deserve. But we should do so as efficiently as possible. 7  All speeches are available online at www.bankofengland.co.uk/publications/Pages/speeches/default.aspx  7  Implementation must not only be effective; it must also be dynamic. That is, authorities must learn by doing and make adjustments, as necessary, to optimise our efforts, without compromising on the level of resilience the reforms are intended to achieve. The FSB is increasingly focused on assessing whether the reforms are achieving their intended outcomes. To embed a dynamic approach, the FSB is now developing a structured framework to evaluate reforms. The framework, which will be delivered to the G20 Summit in Hamburg, will support more comprehensive impact analysis and will help inform future decisions about any possible adjustments to the reforms. Specifically, it will assess whether G20 reforms are achieving their intended outcomes, identify any regulatory gaps or emerging risks, and flag any potential material unintended consequences. 10  As we assess the effectiveness of reforms at a global level, many national authorities are conducting similar exercises with respect to their domestic efforts.

4  As the complex chains in shadow banking unravelled, a spiral of asset fire sales and liquidity strikes followed, threatening the stability of the entire system and withdrawing access to credit from millions of households and businesses. In response, the FSB set out a comprehensive framework – the Shadow Banking Road Map – to strengthen oversight and regulation of shadow banking. A decade on from the ABCP crisis, the toxic forms of shadow banking at the heart of the crisis – with their large funding mismatches, high leverage and opaque, off-balance-sheet arrangements – no longer represent a global stability risk. 5  And other, more constructive, forms of shadow banking, including money market funds and repo markets, are now subject to policy measures that reduce their risks and reinforce their benefits. In tandem, global assets under management have grown rapidly from around $ trillion a decade ago to $ trillion in 2015, equivalent to 40% of total financial system assets. 6  This growth creates new sources of funding and investment, promotes international capital flows, reduces reliance on bank funding, and brings welcome diversity to the financial system. 4  Broker dealers were involved in market intermediation with short-term funding, opacity in securitisation gave rise to imperfect credit risk transfer, and money market funds were major purchasers of risky bank certificates of deposit and of asset backed commercial paper. 5 These risks have been addressed through reforms to money market funds in the US, broker dealer regulation and securitisation reforms.