The financial crisis has wreaked havoc with the world as we know it, and shored up a new landscape in which macro prudential regulatory supervision is a necessity, banks are considered systemically risky and subject to deep capital buffers while regulators have emerged sharper and more stern than the previous era of light touch. But shadow banking with its hedge funds, investment banks, insurers and various market funds, which appear to effortlessly provide credit, has been identified as threatening to the banking system and financial markets generally, and is now set for regulatory taming.