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Banks asked to report ‘step-in’ risk as regulators crack down on shadow banking contagion

UK lenders asked for information on another potential risk to the system

Regulators are also concerned about the risks from the shadow banking sector
Regulators are also concerned about the risks from the shadow banking sector Photo: Mike Kemp/Getty Images

Banks are set to have to report on the ‘step-in’ risk they face from helping out struggling peers.

The Bank of England’s regulatory arm has proposed new rules around how banks work out and disclose potential liabilities when they step in to offer support to a stressed entity outside their group over and above any legal obligation to do so.

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