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 interconnectedness between traditional banks and non-bank institutio...
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