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The International Monetary Fund’s managing director has voiced serious concerns about the rapid expansion of non-bank financial institutions. Recent collapses in the private credit market have heightened regulatory worries about this growing sector.

Global Financial Leader Sounds Alarm on Shadow Banking Risks

The head of the International Monetary Fund has revealed that concerns about mounting risks in non-bank lending markets are causing sleepless nights, according to reports from the IMF’s annual meeting in Washington DC. Kristalina Georgieva specifically pointed to the recent collapse of subprime auto lender Tricolor and car parts supplier First Brands as examples of why regulators need to increase their focus on this sector.