Glenn Stevens flags capital market risks
RBA governor warns of potential for 'abrupt' sell-off
The banking system has become safer, but supervisors should be vigilant to possible risks developing in capital markets, warned Reserve Bank of Australia governor Glenn Stevens yesterday.
Stevens, who recently took over as chair of the Financial Stability Board's Standing Committee on Assessment of Vulnerabilities, told an audience in New York that he saw two structural reasons why capital markets could be a source of risk.
First, the role of asset managers has been expanding, he said, as
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