The occasion for this specific analysis is the recent statement about the main areas of concern of the Financial Stability Board (FSB) that was issued by the head of the global supervisor Klaas Knot. In particular, this statement focused on vulnerabilities in non-banking financial intermediation (NBFI), the so-called “shadow lenders”. More specifically, “Vulnerabilities in non-banking …
Tag: shadow economy
Wall Street: The debt bubble of 1.7 trillion dollars in the private debt shadow market
Private credit has grown exponentially in recent years as banks have reduced their balance sheets due to tighter regulations. The private debt bubble harkens back to the days of crazy investment risk-taking before the 2008 financial crisis. Right now we have a boom in the $1.7 trillion private debt market, where private equity funds lend …