Elizabeth McCaul, a member of the supervisory board of the European Central Bank, has raised concerns about the “remarkable” growth of private funds and non-bank financial intermediaries, also known as shadow banks, in an interview with the Financial Times.
“There are certainly caution lights in front of us,” McCaul told the FT. “The most prevalent one is the area into which we likely have the least visibility and where things can move faster than [...] the normal credit dynamics — that is the non-bank financial intermediaries market.”
