Despite regulators’ best efforts to stop risky behaviour at European banks, nearly 70% of respondents to the annual Regulatory Snapshot Survey by Financial News in association with the International Capital Markets Association expect such activities to simply move into the shadow banking sector.

In addition to the 67.8% of respondents that said a shift of risky activities to the shadow banking sector was likely or very likely, 42.5% of those surveyed anticipated a shift from bank to market-based financing.