LONDON (Reuters) - Securities regulators in Britain and elsewhere need to do a better job of regulating hedge funds and so-called shadow banks, Bank of England deputy governor Paul Tucker said in an interview published on Thursday.
“I think securities regulators around the world just need to up their game on their oversight of non-banks; this is not just a point about this country but it is relevant to this country,” Tucker told the Financial Times.
Tucker - who steps down at the end of this week - drew a parallel between the low interest rates after the dotcom crash, which fuelled risk-taking which culminated in the 2008 financial crisis, and the current environment of low interest rates.
He did not see any particular risks from Chancellor George Osborne’s proposal that Chinese banks operating in London be primarily supervised from China, so long as they stuck to simple products aimed at the wholesale market.
Reporting by David Milliken; Editing by Sonya Hepinstall