Commenting on the European Commission’s Green Paper on shadow banking, issued today, Simon Lewis, AFME’s chief executive said:

“Shadow banking poses particular challenges for regulators who must address the potential systemic risks posed by entities that undertake bank‐like activities in an integrated and proportionate way without undermining the benefits they bring in diversifying risk and supporting economic growth.

“Given changes to global banking regulations, it is particularly important that capital markets‐based financing be encouraged to help businesses access the widest possible sources of funding in order that they can fully contribute to the growth of the economy. AFME welcomes the opportunity to engage with policymakers to develop the most appropriate market infrastructure to allow for this much-needed growth, whilst also mitigating any potential systemic risk.”