IMF Points to Risks in Shadow Banking Growth in Emerging Markets

Emerging market policymakers should closely monitor how the growth of non-bank lending is exposing their countries to new risks, according to the International Monetary Fund.

Eighty percent of debt flows into emerging markets have come from non-bank institutions such as pension funds and hedge funds since the financial crisis, the IMF said in its global financial stability report on Tuesday. Private credit assets, meanwhile, have grown fivefold in emerging markets over the past decade to between $50 billion and $100 billion.