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Growing Risks from Europe s Shadow Banking Demand Greater Regulatory Scrutiny

Europe’s non-bank financial institutions (shadow banks) have attracted the watchful eye of regulators concerned about their rapid growth and ties with traditional banks after many shadow banks engaged in risky lending during the previous low-rate regime. What regulatory measures are needed to contain contagion risks to the banking sector?

Financial Stability Review, May 2023

The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.

Key linkages between banks and the non-bank financial sector

The European Central Bank (ECB) is the central bank of the European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.

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