Regulation

Greensill scandal spotlights risks of non-bank finance sector

Reform needed of rules around acquiring an existing bank as 'a matter of urgency'

Greensill gave evidence during a virtual Treasury select committee hearing into the collapse of his company, with MPs now calling for reform
Greensill gave evidence during a virtual Treasury select committee hearing into the collapse of his company, with MPs now calling for reform Photo: Getty Images/Chris J. Ratcliffe

The Greensill Capital scandal has shone a spotlight on the risks involved with non-bank firms spreading into areas of finance traditionally dominated by regulated lenders, MPs on the Treasury committee have said.

The warning came from the MPs’ 19 July report on the lessons learned from the failure of the supply-chain finance firm Greensill, after several hearings into the matter were held during the first half of 2021.

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