Shadow Banking

Explainer: why Ireland could be sitting on a €4.5bn private credit bubble

Shadow banks have more than €14 billion in additional capital ready to deploy in Ireland, according to survey conducted by Davy

Non-banks are responsible for 37 per cent of total lending in Ireland, particularly in the commercial property sector.

Financial regulators are becoming increasingly alarmed by a new blind spot they have identified in the system.

This blind spot relates to deals done by non-banking institutions in private markets, including private equity houses, investment funds, insurance funds and more.

Since the financial crash more than a decade ago, the non-bank sector has exploded in size, as investment risk shifted away from regulated financial institutions to sources of private capital, or so-called shadow banks. Regulators ...