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Regulators Need to Play Catch-Up on Private-Credit Risk, Canada Central Banker Says

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OTTAWA—Global authorities must step up their surveillance of lending by nonbank players such as hedge funds and institutional investors to minimize risks to financial stability, Bank of Canada Gov. Tiff Macklem said.

Stronger banking regulations introduced following the 2008-09 financial crisis have shifted riskier activities to nonbank participants such as hedge funds, pension funds and asset managers, diversifying risk and improving access to financing, he said.

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