INSUBCONTINENT EXCLUSIVE:
The world economy faces risks ranging from surging non-financial corporate debt to US fights with creditors and the potential for a new
global dividing line.
Those concerns dominated the second day of the Bloomberg New Economy Forum in Singapore on Wednesday, where former
Federal Reserve Chair Janet Yellen warned the US might struggle to cope with lending risks that have spread beyond banks.
In the starkest
the opening of the event, which is being organised by Bloomberg Media Group, a division of Bloomberg, the parent company of Bloomberg News
The authority of US banking regulators to deal with risky debt is limited, she added.
Yellen was joined on a panel by Ravi Menon, managing
director of the Monetary Authority of Singapore
He noted that loose liquidity and expansionary policy in developed economies had led to a build-up of debt in emerging markets
In ramping up their dollar borrowing, such economies become exposed to a strengthening greenback and rising interest rates.
