Let risks stay in non-bank sector, says EU official
Regulators and experts discuss solutions to financial activities migrating outside banking system
Financial intermediation by non-banks does not need to be heavily regulated, but policy-makers must probe their links to the banking system, a top European Union official has said.
John Berrigan, director-general for financial stability, financial services and capital markets union at the European Commission, said on October 15 that it would be unrealistic to believe regulators could eliminate risks in the non-bank sector.
“Risk is like the law of thermodynamics – you cannot destroy it,” he said
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