April 25, 2018 / 9:08 AM / in 5 months

Central banks need to think about non-bank bailouts - ECB's Lane

PARIS (Reuters) - Central banks need to consider the possibility that they might have to bail out a non-bank financial actor to protect broader financial stability, European Central Bank (ECB) policymaker Philip Lane said on Wednesday.

Irish central bank Governor Philip Lane participates in the forum on dealing with booms and busts during the IMF/World Bank spring meeting in Washington, U.S., April 21, 2018. REUTERS/Yuri Gripas

Speaking at a conference at the French central bank, Lane said non-banks were increasingly acting as intermediaries in lending out debt, a role traditionally held by banks with access to central bank liquidity.

Asked about the possibility that central banks might need to bail out non-banks, Lane said: “In terms of monitoring financial stability, we do need to think about it.”

Reporting by Leigh Thomas; Editing by Sudip Kar-Gupta

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