ECB's Villeroy Sees Risks From Shadow Banking, Emerging Markets
- Shadow-banking regulation must be strengthened: Villeroy
- Villeroy warns of danger from Trump’s protectionist policies
This article is for subscribers only.
Supervisors need to keep a close eye on shadow banking and emerging market debt a decade on from the fall of Lehman Brothers, Bank of France Governor Francois Villeroy de Galhau said in a radio interview on Saturday.
As banks have pulled out of riskier businesses since the financial crisis, specialized investors have stepped in to swell the European Union’s shadow-banking system to more than 42 trillion euros ($49 trillion) in assets at the end of 2017, or about 40 percent of the bloc’s financial system, according to the European Systemic Risk Board.