ECB's Draghi Seeks Tougher Policing of $49 Trillion Shadow Banks

Draghi speaks at the bank’s news conference in Frankfurt.Source: Bloomberg)
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European Central Bank President Mario Draghi called for stricter scrutiny of investment funds and other firms in the shadow-banking industry.

Regulators have forced banks to become more resilient in the last decade, but the “next step will be to ensure that equally strong regulation and supervision” is applied to shadow banking, Draghi said in Frankfurt on Thursday. “Of course, one has to take into account the differences in institutions.”