Stanley Fischer, vice chairman of the Federal Reserve speaking on Shadow Banking Regulation:
- Suggests largest and most connected shadow banks may need regulations similar to banks in order to improve US financial stability
- Suggests imposing leverage ratio requirements on shadow banks to promote solvency across non-bank lending sector
- Suggests requiring some shadow banks to perform stress tests to demonstrate their solvency
- Suggests requiring some non-banks to maintain buffers of highly liquid assets
- Says Federal Reserve limited in what it can do, given its lack of authority over shadow banking sector
Headlines via Reuters
