Gaps emerge in US plan to regulate non-bank systemic risk

Former regulators say FSOC may struggle to measure systemic risk in repo, loan markets

In March, the body responsible for co-ordinating US regulators decided to downgrade the idea of designating individual non-bank institutions as systemically risky. This does not mean non-bank systemic risk has dissipated. Quite the reverse, says Fabio Natalucci, deputy director of the monetary and capital markets department at the International Monetary Fund.

“We have seen a deterioration of credit standards, rising leverage, greater liquidity mismatch – suggesting that vulnerabilities in the