Global regulators have claimed victory in the drive to tame the toxic parts of the “shadow banking” market that made a devastating contribution to the global financial crisis a decade ago.

Reforms put in place by the G20 nations have successfully tackled the most pressing issues that contributed to the crisis, according to the annual report from the Financial Stability Board, an international group of policymakers and regulators, including to improve the supervision of shadow banks, institutions which perform banklike functions such as lending but do not have the same safeguards.

The threat from shadow bank was exemplified during the financial crisis by AIG, the US insurer which got into trouble selling derivative contracts on subprime mortgages and required a $180bn bailout when the bets soured.