Welcome back to a special series of Emlex podcasts designed to make sense of

of 2023 and what the new year is likely to bring.

My name is James Panicki.

I'm Emlex's Asia Pacific Senior Editor,

and it's great to have your company. Emlex Financial Services Chief Correspondent Fiona Maxwell

has appeared regularly on this podcast over the course of 2022, and if Fiona's 2023 outlook

is anything to go by, she'll be appearing on the podcast quite a bit over the coming

12 months. Shadow banking, Basil 3.1 and the UK's post-Brexit financial services markets

bill, it will all be happening. With her thoughts recorded in the final days of 2022,

here's Fiona Maxwell from London. So for 2023, I would say there are probably three

main topics that I will be keeping an eye on. Many other stories will be cropping up as there is

never a dull day in financial services. But here are the main three things that I think

will be of interest. So the first, which I would really say is the number one thing to watch out

for in 2023 is the regulation of non-banks or shadow banking. So regulators call them NBFI, non-bank financial intermediation or

institutions. And there are three events in, or three very serious events in the last few years,

which threatened to derail financial stability. So it's the March 2020 dash for cash,

the default of Arcagos, last year and then pension fund chaos in recent months in the UK. And they've all led to regulators calling for much tougher

regulation in the non-bank sphere. Generally, there's a theme or a couple of themes that run through

them, which can kind of be put

down to liquidity mismatches and hidden leverage with each incident, seeing part of the shadow

banking sector struggling to find the available cash to poster's margin. I think we'll find out a

lot more about what happened in these incidents and what can be done to fix them, but those are

...