Yellen: Regulating nontraditional banks is difficult

Janet Yellen, head of the Federal Reserve, said during a conversation with International Monetary Fund Managing Director Christine Lagarde that overseeing the nontraditional banking sector is tough but that regulators are ramping up their efforts. "We simply have to expect that when we draw regulatory boundaries, and supervise intensely within them, that there is the prospect that activities will move outside those boundaries and we won't be able to detect them," Yellen said.

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