City Of London
Pensions Chaos Deepens Fears Over UK Shadow Banking Risks
- Shadow banking encompasses hedge funds to pawn shops
- Regulators have worried about shadow banking risks for years
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With uncanny timing, the Bank of England’s quarterly review of the risks facing the banking system landed during a fresh bout of market panic.
Wednesday morning’s financial policy summary expressed confidence in the resilience of traditional banks to weather a downturn. Of greater concern was the shadow banking system, the industry of lenders, brokers and other intermediaries that fall outside the realm of traditional regulated banks.