BIS warns of stability risks from ‘fiscal-financial nexus’
Report sounds alarm over public debt and NBFIs’ role in bond markets, as de Cos calls for immediate action
High levels of public debt and the increasing role of non-banks in sovereign bond markets are creating a “fiscal-financial nexus” that could amplify the transmission of market stress, the Bank for International Settlements has said.
In a chapter of its latest Annual Economic Report, published today (June 28), the BIS points to interlocking problems that pose threats to financial stability if they are not dealt with proactively.
Governments, it says, have borrowed more to mitigate the impact of
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