Hedge funds and private credit pose stability risks, says Macklem
Canadian governor says firms’ growing importance could have knock-on effects in times of stress
The rapid growth in two areas of non-bank finance may be creating vulnerabilities in the global financial system, the governor of the Bank of Canada (BoC) has warned.
Speaking at an event hosted by the Global Risk Institute in Toronto on March 4, Tiff Macklem said global surveillance and regulatory frameworks had not kept pace with changes in financial markets. “Risks may be growing faster than our ability to understand and mitigate them,” he said.
The first area the BoC governor highlighted was
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