Event

Financial stability risks from private markets and non-bank finance

This event hosted by UK think tank NIESR examines whether the growth of private credit and non-bank finance poses new risks to financial stability.

Private credit and other forms of non-bank finance have grown rapidly over the past decade, reshaping the way companies borrow and altering the structure of the financial system. Supporters argue that this shift has diversified sources of finance, reduced reliance on banks and helped allocate capital more flexibly. Critics worry that risks may have migrated rather than disappeared—into less transparent markets where leverage, valuation uncertainty, liquidity mismatch and complex links with banks, insurers and investment funds are harder to monitor.

This panel will examine whether the growth of private credit and non-bank finance poses new risks to financial stability, and whether the approach currently being taken by policymakers is sufficient. The discussion will ask how resilient these markets would be under stress; whether existing regulatory frameworks are adequate; and how risks could transmit back to the banking system and the wider economy.

Speakers

Richard Portes –  Professor of Economics at London Business School, and Member of the European Systemic Risk Board’s Advisory Scientific Committee

Stephen Blyth – External Member of the Bank of England’s Financial Policy Committee

Saad Siddiqui – Deputy Chief of Global Analysis at the IMF