Organizers claimed that nearly 2 million Hong Kong protesters took to the streets Sunday in a rally to demand the city's top official resign a day after she suspended — but...China Politicsread more
Heavy rains caused unprecedented delays in planting this year and contributed to record floods across the central United States.Agricultureread more
Although Cook did not mention companies by name, his commencement speech in Silicon Valley's backyard mentioned data breaches, privacy violations, and even made reference to...Technologyread more
U.S. ambassador to Israel David Friedman called the gesture a "birthday present" to Trump, who turned 73 on Friday.Politicsread more
The agreement, which is on the framework for the plan of adjustment, provide for more than a 60% average haircut for all $35 billion, a 36% haircut on pre-2012 general...Bondsread more
In the survey, 66% of Democratic primary voters say they'd be enthusiastic or comfortable about Biden as their nominee to take on President Trump in the 2020 election. Just...Politicsread more
Target's registers were down on Saturday for several hours preventing customers from checking out.Retailread more
The newspaper wrote that Goldman's executive are hoping CEO David Solomon's changes to a firm that historically thrived in investment banking and trading will boost its...US Marketsread more
The Fed is not likely to make a move on interest rates when it meets next week, but it should clear the way for a rate cut later in the summer.Market Insiderread more
Representatives from the Chinese side say they think it likely that Chinese President Xi Jinping will attend the G-20 meeting later this month. But in order to reach a trade...China Economyread more
With uncertainty keeping a lid on U.S. stocks, Ed Clissold of Ned Davis Research says the rest of 2019 is likely to be a "choppy," but somewhat opportunistic, ride for...Futures Nowread more
LONDON, Feb 4 (Reuters) - Better data is needed to spot risks from "shadow banks" stepping up credit to heavily indebted companies, an annual survey of the non-banking financial system said on Monday.
The Financial Stability Board (FSB), a body of regulators that coordinate financial rules for the Group of 20 Economies (G20), said leveraged loans warranted closer attention given the potential for spillovers into other markets if something went wrong.
"Given these developments ... it is important to consider enhancing data/information collection so as to have clearer view of the market and its risks," the FSB said in its Non-Bank Financial Intermediation report for 2017.
Non-bank or "shadow bank" finance refers to credit generated outside banks, such as by collective investment vehicles, broker-dealers and funds that invest in bonds and money markets.
Shadow banking, with its pejorative connotations, is a term the FSB no longer uses as it seeks to emphasise how the sector can provide valuable credit to the economy as banks rein in risk-taking to cut down on how much expensive capital they must hold.
The FSB said its "narrow" measure of shadow banking grew by 8.5 percent to $51.6 trillion in 2017, or 14 percent of total global financial assets.
Since 2011, just four countries, China, the Cayman Islands, Ireland and Luxembourg, have accounted for over two-thirds of the dollar value increase, the FSB said.
The report said non-banks are playing a growing role in the $1.4 trillion to $2.4 trillion market for leveraged loans to companies that have high levels of debt and a credit rating below investment grade.
About two-thirds of collateralised loan obligations (CLOs) that repackage the loans are held by non-bank investors, including pension funds, insurers and investment funds, the FSB said.
Regulators are sometimes unable to see who is ultimately exposed to leverage loan debt piles that have grown rapidly and now exceed pre-crisis highs, and whether they could absorb shocks as some don't have substantial capital buffers like banks.
Earlier this month, Bank of England Governor Mark Carney likened leveraged loans to subprime mortgages that defaulted a decade ago in the United States to trigger the global financial crisis.
The FSB said its broad measure of shadow banking, which includes pension funds and insurers, grew by 7.6 percent to $116.6 trillion in 2017, a record 30.5 percent of global financial assets.
The FSB also said financial technology, or fintech, businesses were a growing feature in shadow banking, extending about $284 billion in credit in 2016, but data was too poor to get a full picture. (Reporting by Huw Jones; Editing by Mark Potter)