Regulators should place limits on non-bank financial institutions' asset purchases, a working paper published by the European Systemic Risk Board argues.

In Macroeconomic effects of secondary market trading, Daniel Neuhann finds that, even in the absence of "financial shocks", the dynamics of asset markets generate periods of "growing aggregate credit volumes and falling credit standards".

His model distinguishes between "banks", which lend to firms and household directly, and "financiers"