Global policymakers are launching a review of the efforts that national regulators are making to enhance their oversight of the risks posed by so-called shadow banking firms, the Financial Stability Board (FSB) announced on Friday.

The FSB is undertaking a peer review to evaluate the progress made to implement the principles set out in its framework for assessing and mitigating the financial stability risks posed by shadow banking entities.

That framework, which was released in 2013, focuses on the underlying economic functions of shadow banking firms instead of their legal forms. It also establishes overarching principles that authorities should adhere to in their oversight of firms that pose possible risks to financial stability.

As part of the review, the FSB has distributed a questionnaire to national authorities, which will be analyzed and discussed later this year. In addition, it seeking feedback from financial institutions, industry and consumer associations on the areas covered by the peer review, the FSB notes, including: the institutional arrangements needed to update the regulatory perimeter to capture new forms of shadow banking; setting out the types of information that may be necessary to assess shadow banking risks; and possible ways to enhance public disclosure of the risks posed by shadow banks.

Feedback on the review should be submitted by July 24. The peer review report will be published in early 2016.

Transforming shadow banking into a resilient form of market-based finance is one of the core elements of its regulatory reform agenda intended to address weaknesses that contributed to the global financial crisis, the FSB notes.