Fischer sets sights on shadow banks
Regulators must do more to toughen non-bank regulation
US regulators need to "get moving" on strengthening non-bank financial institutions, which make up a large proportion of the financial system and yet fall largely outside the reach of regulation, Federal Reserve vice-chair Stanley Fischer said today.
Fischer told an audience at the Deutsche Bundesbank he estimated non-banks made up around 60% of the US financial sector in terms of credit supplied, based on flow-of-funds data.
The non-bank sector is notoriously hard to measure, but Fischer said
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