RTS: Criteria for identifying shadow banking entities (Reg 575/2013)

This regulation establishes technical standards to identify 'shadow banking' entities. These are financial intermediaries that perform bank-like activities but operate outside the traditional regulated banking system. By defining clear criteria for these entities, the EU aims to better monitor systemic risks and ensure financial stability across the union.

This affects financial institutions, credit agencies, and investment funds. It changes how banks report their exposures to non-bank financial intermediaries to ensure supervisors can track potential risks in the financial system.