Bundesbank’s Dombret urges co-ordination over shadow banking
Andreas Dombret believes the use of the shadow banking system for maturity and liquidity transformation and credit risk transfer is "not evil per se", but regulators must act to contain the systemic risks that accompany them.
Dombret, a member of the Deutsche Bundesbank's executive board, stressed the need for regulatory reforms to address the links between banks and shadow banking institutions.
Speaking yesterday in Salzburg, he argued the implementation of the Basel III capital and liquidity
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