FSB warns of ‘increasing signs of complacency' in financial markets

Concerns about mispricing of liquidity risks also raised at plenary meeting

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There are increasing signs of complacency about risks in financial markets, prompted in part by "exceptionally accommodative" monetary policies, the Financial Stability Board (FSB) noted after its plenary meeting in Cairns, Australia this week.

"While market forces and regulatory reforms since the crisis have reduced leverage in the banking system, leverage has picked up in other parts of the financial system, including in corporate debt markets," the FSB cautioned, adding there were also

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