BCBS: tighter rules for global financial system

The head of the world’s top financial regulator (Basel Committee on Banking Supervision), Pablo Hernández de Cos, has called for tighter rules to clamp down on risks spreading from so-called “shadow banks”, officially known as non-bank financial intermediaries (NBFIs), to other parts of the banking system. The chair of the BCBS mentioned that events of recent years highlighted the dangers of the close links between shadow banks, such as funds and insurers, and regular lenders.
In this alert, you will read more about the new risk management challenges ahead and the conclusions.