US regulators were faulted by the International Monetary Fund for “little institutional response” to increasing financial-stability risks posed by nonbanks.
“Instead, the recent tailoring of financial regulation has led to a steady easing of regulatory constraints,” the staff report this month said. It cited historically high US levels of corporate debt and weakening underwriting standards.
The government should also “strengthen and more fully resource” the US Office of Financial Research “to address continuing data blind spots” in the financial sector, the IMF said. “Medium-term financial stability risks are growing.”
US regulators slammed by IMF for 'little institutional response' to growing nonbank risk
20 June 2019 10:35am