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Private markets are less rewarding than they used to be

DeFi risks and the decentralisation illusion

This feature analyses decentralised finance (DeFi), a new form of crypto intermediation that uses automated protocols on blockchains and stablecoins to facilitate fund transfers. Even though links with traditional finance are currently contained, DeFi warrants closer monitoring because of high leverage, limited shock-absorbing capacity and built-in interconnectedness.

BIS Quarterly Review: Widening The Regulatory Circle For Non-Bank Financial Firms

<ul> <li> <p><span>Non-bank financial intermediaries (NBFIs) have grown significantly. Their activities can amplify market stress and undermine financial stability.</span></p> </li> <li> <p><span>A macroprudential regulatory approach is needed to address the structural vulnerabilities in NBFIs, most notably liquidity mismatches and hidden leverage.</span></p> </li> <li> <p><span>Concerns about a new virus variant late in the period under review<a href="https://www.bis.org/press/p211206.htm# ftn1" name=" ftnref1" class="hashlink"><span class="firstword">1</span></a>&nbsp;&nbsp;curtailed investors risk appetite. Financial conditions tightened in several emerging market economies where inflationary pressures persisted.</span></p> &

Green investment frenzy runs risk of becoming a bubble, BIS says

Green investment frenzy runs risk of becoming a bubble, BIS says
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