well. conclusion canada and chile have benefited greatly from the strong global economic growth of recent years. but the global economy could suffer if policy actions are not taken to deal with global imbalances. in this context, i have spoken of domestic policies that are particularly important for countries such as ours : structural reforms to encourage economic efficiency and flexibility, a sustainable fiscal policy, and a monetary policy based on inflation targeting. by following these domestic policies, both canada and chile will be well placed to handle developments in the global economy, whatever those may be. but we also need to work together to shape that global economy. we need to support free trade in goods and services and to resist protectionism. and, as i said, we - together with other countries - need to make the international financial system as efficient and effective as possible. an important part of this effort will be to modernize the imf. with strong domestic policy frameworks and a strengthened international financial system, chileans and canadians can look forward to continued strong economic growth in the years ahead.

intermediation ( e. g. equity investment funds ) or that are already prudentially consolidated into banking groups. as a result, it is believed that this narrower measure more accurately reflects the size and composition of the shadow banking sector, subject to the caveats and fsb ’ s resolve to further refine the narrower measure. another change that has been brought in this time around is a new activity - based “ economic function ” measure of shadow banking, each of which involves non - bank credit intermediation that may pose shadow banking risks ( e. g. maturity / liquidity transformation and leverage ). the five economic functions are certain entities that are susceptible to runs ( ef1 ), lending dependent on short - term funding ( ef2 ), market intermediation dependent on short - term funding or secured funding of client assets ( ef3 ), facilitating credit creation ( ef4 ), and securitisation - based intermediation ( ef5 ). 4. the main findings from the latest exercise are as follows : the narrow measure i. the narrow measure of global shadow banking that may pose financial stability risks amounted to $ 36 trillion in 2014 for the 26 participating jurisdictions. this is equivalent bis central bankers ’ speeches to 12 % of financial system assets, and has grown moderately over the past several years. ii. more than 80 % of global shadow banking assets reside in a subset of advanced economies in north america, asia and northern europe. iii. the new classification by economic functions shows that credit intermediation associated with collective investment vehicles with features that make them susceptible to runs ( e. g. money market funds ( mmfs ), hedge funds and other investment funds ) represents 60 % of the narrow measure of shadow banking. it has grown more than 10 % on average over the past four years. by contrast, the level of securitisation - based credit intermediation – among the key contributors to the financial crisis – has fallen in recent years. iv. at the aggregate level, interconnectedness between the banking and the non - bank financial system continues to decrease from its pre - crisis peak. the broad measure i. an aggregate “ munfi ” measure of the assets of other financial intermediaries ( ofis ), pension funds and insurance companies grew by 9 % to $ 137 trillion over the past year, and now represents about 40 % of total financial system assets in 20 jurisdictions and the euro area. ii.