Financial intermediaries involved in the creation of credit, but are not subject to regulatory oversight e.g hedge funds. This sector is exponentially growing and in 2013 grew by $5 trillion to $75 trillion, making up on average 25% of all financial assets, roughly half of the banking system assets, and 120% of GDP. This is a worrying trend as lower capital regulation imposed on these types of FIs raises fears of more bank failures and systemic crises.