More from Fed VC Fischer: measuring shadow banking
More from Fed VC Fischer: measuring shadow banking is not in most policy makers' toolbox and the U.S. does not have good systems to do so, he said. That said, he doesn't view leverage lending as a threat right now to the financial system, though regulators never know if they've solved the too-big-to-fail question. They assess metrics like capital and liquidity to make sure big banks survive adverse events. He waded into the tense political atmosphere as well, noting that trade remains a growth driver and rising protectionist sentiment could put that at risk amid the current "political mood." Fischer still sees China growing fast, but declining in use of commodities. He views low interest rates as helping relieve debt service burdens for countries and firms alike.