Andrew Bailey Raises Alarm over ‘Shadow Bank’ Risk

Andrew Bailey raises alarm over ‘shadow bank’ risk

Is Andrew Bailey the weakest link?

The Financial Times has published an article by Andrew Bailey, governor of the Bank of England and chair of the Financial Stability Board, in which he warns of the risks posed by the explosive growth of private credit markets. What struck me most about the piece was not what Bailey said. It was what he admitted without ever quite acknowledging the full implication of doing so. He suggested that the Financial Stability Board, which he chairs, has…