Newsletter June 2011: New opportunities seen for shadow banking sector

NEW YORK – The shadow banking system is well positioned to take on a greater role in lending as the economic and political aftershocks of the financial crisis reshape the more traditional banking industry, according to a research note issued in mid-May by rating agency Standard & Poor’s. And, shadow banks are likely to try to advance the emerging opportunity, it says, to finance more assets that banks either can't or won't fund because of new regulation, such as the Dodd-Frank reform Act passed in the US last year and the Basel III capital standards.