FSB exec dismisses leverage cap proposals for NBFIs
Tackling excessive leverage requires a nuanced approach instead of a broad cap, says Martin Moloney
The deputy general secretary of the Financial Stability Board (FSB), Martin Moloney, has said applying a broad leverage cap across non-bank financial intermediaries (NBFIs) is not the solution to tackle excessive leverage in the sector, but a more detailed approach is needed.
Leverage in NBFIs has come under increased scrutiny after events such as the downfall of Archegos and the involvement of UK liability-driven investment funds in the gilt crisis. Concerns from these events centre around the
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