Davos 2023: UBS head says regulators’ ‘eyes off the ball’ on non-banks

LONDON, Jan 18 (Reuters) – UBS Chairman Colm Kelleher mentioned conventional finance corporations had been “systemically protected” after years of elevated regulation, however guardians of world monetary markets had additional to go to eradicate the dangers posed by the non-banking sector.

“Regulators have – with respect – taken their eyes off the ball by way of the non-banking sector,” the chairman of Switzerland’s largest financial institution mentioned throughout a panel dialogue on the World Financial Discussion board in Davos, referring to a class of loosely supervised finance corporations.

“Banks and insurance coverage corporations are effectively regulated. They’re systemically protected, we will argue,” he added.

The world’s largest banks have emerged largely unscathed from months of turmoil within the nascent cryptocurrency sector, which has toppled a number of main crypto buyers, lenders and exchanges.

“I believe we have dodged a bullet as a result of this factor blew up in a short time however it is going to come again in a single type or one other,” he mentioned.

“We’re in search of the regulatory framework that may enable us to accommodate that for our shoppers.”

Reporting by Stefania Spezzati and Sinead Cruise; Modifying by Bernadette Baum

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