Shadow banking risks in non-securitisation SPEs

Central Bank of Ireland data on non-securitisation SPEs allow for a qualified assessment of shadow banking risks within the sector. While risks appear to be relatively contained, international co-operation is required to undertake a complete risk assessment. Within these SPEs, risks are the most prominent for entities engaged in loan origination, bank-linked portfolio investment or external financing activity. The level of cross-border interconnectedness is high and a full understanding of risks requires an overview of the entire structures, which typically spans more than one jurisdiction.