The International Monetary Fund has warned the Bank of England its upcoming stress test of the $300trn shadow banking system could backfire and make regulating the sector harder.
Speaking at the IMF Spring meeting in Washington DC, financial counsellor Tobias Adrian said the BoE's quest to find instability in shadow banks - such as hedge funds, pension funds, insurers and asset managers - could fail due to regulators not having enough data on the sector's lending and borrowing activities, The Times has reported. Hunt and Bailey united at IMF talks on potential banking changes The Bank of England will start its first survey of the shadow banking system this year, due to financial instability concerns amid rising interest rates, as this area of the industry is s...
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