Banks are being marginalised in global capital markets, the annual confab of the Group of 20 - which sets political goals for global financial regulators - will hear when finance ministers meet for a summit in Hangzhou, China this weekend."The financial system is changing to rely more on markets and less on banks," Mark Carney, chair of the Financial Stability Board said in a preview of a rosy assessment of global finance."The most rapid asset growth was experienced by trust companies as well as money market, fixed income and other funds," the second annual report on the Implementation and Effects of the G20 Financial Regulatory Reforms highlighted."Growth was due in part to a substantial increase in non-bank credit intermediation, largely from capital markets."The FSB said "non-bank financial intermediation has grown in several advanced economies (particularly in Europe) since the crisis, and now represents about 40 per cent of total financial system assets in 20 jurisdictions and the euro area."Carney and the FSB said "the shift toward more market-based finance represents a welcome increase in diversity of the sources of finance supporting economic activity."