Europe’s non-bank financial institutions (shadow banks) have attracted the watchful eye of regulators concerned about their rapid growth and ties with traditional banks after many shadow banks engaged in risky lending during the previous low-rate regime. What regulatory measures are needed to contain contagion risks to the banking sector?
Meeting on Tuesday (16 May) in Brussels, EU member state finance ministers discussed the Commission's proposal for an updated Bank Crisis Management and Deposit Insurance (CMDI) framework, revealing splits between member states.