April 25, 2018 / 9:08 AM / 7 months ago

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

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

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.

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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