Bailey warns of 'urgent need' to improve resilience in non-bank finance

BoE flags potential shadow banking systemic risk

The Bank of England has flagged the rapid growth of shadow banking as a potential threat to global financial stability, with Governor Andrew Bailey highlighting the “urgent need” to strengthen resilience in market-based finance, according to a report by The Times. The sector, which includes private credit, private equity, hedge funds, and insurance companies, has expanded to an estimated $16tn globally. Bailey stressed that the interconnectednes…

Bailey warns of 'urgent need' to improve resilience in non-bank finance

The Governor of the Bank of England has warned of an “urgent need” to improve the resilience of the sprawling network of financial firms lending beyond the traditional banking sector.  Andrew Bailey said that the financial sector was significantly more robust than it had been before the financial crisis, but warned that regulators still faced risks from so-called market-based finance.   “Just because the banking system is in a far more resilient…