That Bank of England lately Unpacked 65 billion pounds ($72 billion) as an emergency measure to avoid a crash in government bond prices. Without the intervention, UK pension funds, which rely heavily on bond holdings, would have defaulted.

A major economic crisis was averted.

However, according to recent comments from former government officials and market analysts, the UK economy is far from off the hook: other non-bank financial institutions continue to pose a risk to the country’s stability.

Related link: Why did the Bank of England commit $72 billion to prevent a Lehman moment?

This week the former British Prime Minister Gordon Brown repeated these fears on a BBC radio Interview.

“I don’t think this crisis is over because the pension funds were bailed out last week,” Brown said said. He called on UK regulators to tighten their oversight of shadow banking.

“I think there needs to be constant vigilance over what has happened to the so-called shadow banking sector and I fear there could be more crises,” he added.

Unregulated Lenders

Bond funds, private lenders, and companies involved in cryptocurrencies make loans with regulations in place. As a result, the country’s central bank authority is threatening to lose its influence on monetary policy.

Beginning of August, Paul Tuckerformer deputy governor of the Bank of England, accused the central bank of inadequate regulation of the shadow banking sector.

“What if another decade goes by without a general policy, and then a lot of shadow banking gets unraveled?” Tucker said the financial timesalmost predicting the recent near crash of the bond market in the hands of pension funds.

Last year, the Bank for International Settlements (BIS), an international organization to which most major central banks belong, central banks requested to tighten the regulation of non-bank financial institutions.

Shadow banking covers areas that banks don’t, and as such they are a healthy…