The House of Lords EU Sub-Committee on Economic and Financial Affairs will tomorrow (Tuesday 10 December) hold a one-off evidence session on the issue of shadow banking, the parallel world of unregulated banking activity.
Widely recognised as an important part of the global financial system, the scale of this off-the-books banking sector is said to be in the region of €24bn across the EU.
The Lords Committee will be asking Patrick Pearson, Director for Financial Markets at the European Commission, how it is seeking to reform the shadow banking sector within the EU, and with what levels of success.
Other questions he will face include:
- What are the strengths and weaknesses of shadow banking?
- What threat does it pose to the health of the financial sector if it goes unregulated?
- How big is the sector?
- What approach would you wish to see UK authorities take to the shadow banking sector?
- Is there any danger that regulation of the sector could prevent it being an alternative financing channel for the real economy?
- Is there any danger that the Commission might duplicate work better undertaken at global level?
- How do Money Market Funds function and relate to the shadow banking sector more broadly?
The evidence session will start at 10.45am on Tuesday 10 December in Committee Room 4 of the House of Lords.
The session will be webcast at www.parliamentlive.tv and is also open to the public. Journalists wishing to attend should go to Parliament’s Cromwell Green Entrance and should allow time for security screening.