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The shadow banking industry has grown $6 trillion more than anticipated according to reports, prompting some to state that tighter restrictions need to be put in place over non-bank entities.

The shadow banking industry includes companies funneling funds, typically off-shore, to avoid higher taxes by reducing the amount of profits on paper. Other times, larger banks will employee smaller banks to complete transactions. All transactions occur "outside the regular banking system" according to the Financial Stability Board (FSB), which has issued a release to warn of the risks caused by such banking.

According to the report "FSB believes policies are needed to mitigate the potential systemic risks associated with shadow banking." The report accounts for assets worldwide.

The shadow banking industry has grown to about $67 trillion- $6 trillion more than what had originally been anticipated. The U.S. had the largest shadow banking system, according to American Banker, with assets of $23 trillion.

The risk are associated with institutions using shadow banking to avoid rules that have been set in place in order to prevent a financial crisis. Shadow banking also poses systemic risks due to its inter-connection with the regular banking system. The system is composed of four main structures.

"Investment funds make up the largest slice of the shadow banking system, with $19 trillion of assets, followed by structured finance vehicles, which hold about $5 trillion of assets," according to American Banker. "Broker-dealers, finance companies, financial holding companies and money market funds each hold around $4 trillion of assets."

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But according to public reports, America as a whole failed to earn anywhere near to $23 trillion last year. The projected GPD for the United States in 2011 has been projected at only $15 trillion, $8 trillion less than what was filtered through shadow banking.