WASHINGTON — Better coordination and information sharing needs to be fostered between financial regulators worldwide in order to reduce risks posed by so-called shadow banking sector, a group of international supervisors said Wednesday.

The Financial Stability Board, an international consortium of regulators and central bankers, published the results of a peer review of countries' implementation of the group's 2013 framework for strengthening oversight and regulation of shadow banks.

Ravi Menon, managing director of the Monetary Authority of Singapore and chairman of the stability board's Standing Committee on Standards Implementation that oversaw the preparation of the peer review, said the point of the review was to limit the potential for risk to migrate from banks to other firms because of post-crisis banking reforms.

"Transforming shadow banking into resilient market-based finance is a key priority for the FSB," Menon said. "The findings of the peer review provide a good baseline to monitor future developments, and its recommendations will maintain the momentum for reform."

The review found that, while most nonbank financial firms are covered by some measure of regulatory oversight in most jurisdictions, countries observe a wide range of ways of dividing their regulatory functions. Those tasked with regulating firms that perform banklike activities may or may not be collecting data from those firms that is useful to the average investor or to the regulators themselves to identify risks before it's too late, the report said.

As a result, the report recommended that jurisdictions improve coordination and communication between agencies, identify and resolve data gaps for regulated nonbanks and increase public disclosure where practicable.

The report noted that the United States still accounts for roughly 40% of the global shadow banking industry by assets — by far the single largest jurisdiction, followed by the United Kingdom, Ireland and Germany.

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