Central Banks
BOE Hunts for Better Ways to Probe Buyout Giants and Hedge Funds
- Bailey sees need for improved surveillance, monitoring tools
- BOE has been stress testing more than 50 market participants
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The Bank of England is hunting for better ways to keep a close eye on non-bank financial institutions as it looks to track escalating risks posed by the sector.
The central bank has spent months probing how a bevy of investment banks, insurers, central counterparties, hedge funds and other asset managers can handle different forms of stress as part of its so-called system wide exploratory scenario. Still, Governor Andrew Bailey said regulators have already realized there’s a need for further tools to monitor these players.