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EU mulls regulation for funds engaged in 'shadow banking'

Europe-wide regulation mulled in wake of explosive post-crash growth

EU has asked Esma to look at shadow banking
EU has asked Esma to look at shadow banking

Fund managers engaged in corporate lending – stepping into the gap left by banks after the financial crisis – could be in line for EU-wide regulation for the first time.

The European Commission is in the second quarter of 2016 to start a consultation on so-called 'shadow banking', which has grown into a healthy business for hedge funds, private equity and other fund managers since bank lending has contracted due to post-crisis regulation.

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