Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Markets

News : Markets
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

ECB's Knot calls for stricter regulation of shadow banking

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/03/2018 | 05:23am EST

AMSTERDAM (Reuters) - The rise of non-bank financing is creating a major risk for financial stability in the euro zone and needs to be better regulated, European Central Bank board member Klaas Knot said on Monday.

"Non-bank financial intermediaries provide a high and increasing share of financing in the high-yield debt market," Knot, president of the Dutch central bank, said in a speech in Amsterdam.

"Should conditions deteriorate, such financial intermediaries are directly exposed to considerable potential losses. And perhaps even more important, there could be system-wide spillovers beyond the high-yield debt markets."

Stricter regulation of the so-called shadow banking sector could mitigate risks, Knot said, pointing at rules for mortgage lending in the Netherlands that apply to banks and other lenders alike.

"If we conclude that ... excessive debt and leverage of non-financial counterparts are actually the main drivers of risk, we could also look for instruments that aim to address these directly, such as borrower-based regulation."

Knot was last week appointed vice chair of the Financial Stability Board (FSB), a body that has been coordinating new banking rules for the Group of 20 economies since the global financial crisis a decade ago.

(Reporting by Bart Meijer; Editing by Kevin Liffey)

Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL 0.03% 25891.32 Delayed Quote.10.96%
NASDAQ 100 0.16% 7066.6121 Delayed Quote.11.46%
NASDAQ COMP. 0.19% 7486.7661 Delayed Quote.12.62%
S&P 500 0.15% 2779.76 Delayed Quote.10.72%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Markets"
05:13aLONDON STOCK EXCHANGE : Sainsbury's sinks but Lloyds, trade hopes support FTSE 100
RE
04:19aGlobal Stocks Rise as White House Signals Flexibility on Trade Talks
DJ
03:48aSainsbury's, Swedbank sink while trade talk progress boosts European shares
RE
02/19ASIA MARKETS: Asian Markets Tick Higher; Nikkei Up Despite Disappointing Data On Exports
DJ
02/19JAPAN EXCHANGE : Tokyo's drive to expel zombie stocks hits small caps
RE
02/19Strong Results From Walmart Push U.S. Stocks Higher - Update
DJ
02/19Consumer Stocks Gain After Strong Walmart Holiday-Sales Report - Consumer Roundup
DJ
02/19Tech Stocks Gain on Growth Bets - Tech Roundup
DJ
02/19ADRs Mostly Rise In New York; HSBC, AngloGold Trade Actively
DJ
02/19MARKET SNAPSHOT: Stocks Close Higher As Defensive Sectors Lead; Nasdaq Gains For 7th Straight Session
DJ
Latest news "Markets"
Advertisement