At this point, we're basically saying all repos should be accounted for as borrowings.
FASB Chairman Leslie Seidman

On January 15, 2013, the Financial Accounting Standards Board (FASB) proposed changes to accounting standards for repos intended to improve financial reporting disclosures and more properly reflect a company's obligations and risks. They also will clarify guidance for distinguishing between transactions that are essentially sales that can be moved off the balance sheet and on-balance sheet secured borrowings. 

Appropriate monitoring and regulatory frameworks for the shadow banking system needs to be in place to mitigate the build-up of risks.

On November 18, 2012, the Financial Stability Board (FSB) published for public consultation an initial integrated set of policy recommendations intended to strengthen oversight and regulation of shadow banking. Given the FSB's finding that the shadow banking system grew to a new high of $67 trillion globally last year, it is understandable that regulators and policy-makers, including those among the FSB's membership, fear that shadow banking activities harbor serious and sometimes hidden risks to the global financial system.  The FSB's November 18 release calls for greater controls on this area of the financial world that has thus far escaped explicit regulation.  The consultation paper is timely given the European Commission is poised to propose EU-wide shadow banking rules in 2013, and the US Treasury Department has recently proposed structural changes to money market funds, considered a key part of the shadow banking system, to combat the perceived systematic risks posed by them.

As capital requirements and structural reforms of banks and financial institutions fall into place, global financial regulators are renewing their efforts to bring shadow banking and securitized credit extension under some form of regulatory discipline.  Though shadow banking has many facets needing attention, in an April 19 address at Johns Hopkins University, Lord Turner, head of the UK's Financial Services Authority announced that regulation of repo funding mechanisms would be a priority for the Financial Stability Board this year, and in particular the FSB’s Standing Committee on Supervisory and Regulatory cooperation (SRC), of which he is the chair.