Bank of England Stresses Test Shadow Banking

The Bank of England is conducting a comprehensive stress test on the shadow banking industry, focusing on private equity firms like KKR, Blackstone, Apollo, and Goldman Sachs Asset Management. This test aims to assess the impact of a global economic crisis on the UKs financial system and economy. The private credit industry, which has grown from three to eleven trillion dollars in a decade, is under scrutiny due to its lack of transparency compared to traditional banking sectors. The test follows recent collapses of companies heavily reliant on private credit, raising concerns about potential risks and instability. The Bank of Englands Deputy Governor for Financial Stability, Sarah Breeden, emphasizes the importance of understanding risks in private equity and credit to ensure continued benefits while managing potential dangers.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.