Luxembourg lurks in the dark as regulators light up shadow banking

Washington

LUXEMBOURG, the home of European Commission President Jean-Claude Juncker and of the European Union's biggest fund industry, remains in the shadows.

The grand duchy didn't contribute to the Financial Stability Board's (FSB) annual study of global trends and risks in shadow banking, the non-bank lending that helped trigger the 2008 credit crisis.

Twenty-eight other countries including Singapore, Brazil and even the Cayman Islands - long a byword in secretive offshore finance - contributed data to the regulators' review of efforts to transform risky shadow banking into "resilient market-based finance".

Regulators from the Federal Reserve to the Central Bank of Ireland have been trying to better understand the risks posed by shadow banking …