Shadow banks growing as agents for capital flows: industry veteran

Tokyo

MOST years, legions of well-heeled bankers converge upon Washington for the annual meetings of the International Monetary Fund (IMF) and the World Bank. As these are the big lenders in global markets, and also the big spenders on hotels and entertainment at the annual meetings, they enjoy power and prestige.

Financial executives from private-equity funds, hedge funds, money market and other funds, as well as those from insurance companies and pension funds, occupy a lower rung in the financial hierarchy, but this could soon change, along with the shifts in the global flow of funds, some say.

Charles Dallara, vice-chairman of the board of directors at the Swiss private-equity firm Partners Group and also its chairman for the Americas, is among those…