Friday January 24, 2020

Global non-bank finance has made economy vulnerable, says Central Bank

Substantial growth of sector over last decade has altered financial system, according to regulator

Daniel Murray

Business Reporter

@danieltmurray
15th December, 2019
Gabriel Makhlouf, governor of the Central Bank

The structure of the Irish financial system has been fundamentally altered over the last decade by international non-bank finance, and economic vulnerabilities now need to be urgently assessed, according to the Central Bank.

The substantial growth of the “market-based finance sector”, also known as “shadow banking”, has led the Irish financial system from being “broadly balanced between bank and non-bank financial activities” a decade ago, to now being dominated by non-bank financial institutions....

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