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FSB chair warns of persistent financial system vulnerabilities in non-banks
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In a letter addressed to G20 finance ministers and central bank governors, Klaas Knot, the chair of the Financial Stability Board, stressed that «tail risks remain» despite a gradually fading memory of past turmoil and increasing «optimism over a soft landing for the global economy». Knot urged financial regulators to do more address issues arising from an expanding shadow bank sector – consisting of actors such as lenders, brokers, asset managers, hedge funds, private equity and pension funds – all of which fall outside the realm of traditional regulated banking and are termed as non-b...
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