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Schnabel: ECB Must Monitor Shadow Banks

Board member of the European Central Bank (ECB), Isabel Schnabel, said on Monday that the ECB needs to monitor the growing role of shadow banks.

“Unlike banks, these market participants often do not have access to central bank operations.”

“Were the transmission across money market rates to weaken, or rates to decouple from policy intentions, this could have implications for monetary policy implementation in the future.”

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