The aim of the proposed framework included in the second consultative document Identification and management of step-in risk is to mitigate potential spillover effects from the shadow banking system to banks. This work falls within the G20's initiative to strengthen the oversight and regulation of the shadow banking system and mitigate the associated potential systemic risks. The proposed guidelines define the step-in risk that is potentially embedded in banks' relationships with unconsolidated entities. Step-in risk is the risk that a bank might ...
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