non-banks Archives - Citizen Watch Report

Bank of England warns of risks from non-banks in future markets crisis

December 2, 2024 11:31 am

More work is needed to tackle risks outside the banking sector, according to a Bank of England study which found that a market crisis would be amplified by fire sales of assets by pension funds, hedge funds and other investors. The BoE said a sharp rise in sovereign and corporate bond yields caused by “a …

US big banks face growing risks from non-banks aka private credit.

June 21, 2024 8:56 am

Non-bank financial institutions are increasingly posing risks to America’s big banks, according to a post on the New York Fed’s Liberty Street Economics blog. During times of heightened market-wide stress, non-banks seek term loans and lines of credit, putting pressure on banks to provide liquidity. This reliance on big banks could lead to “vectors of shock …