Risk-off trend threatens global financial markets, Treasury official warns | Premium

As the United States and other Western countries crack down on criminals, hackers, terrorist organizations and sanctions evaders trying to access global financial markets, financial institutions may respond by reducing their ties to risky sectors of the global financial market, a U.S. Treasury official said.

As the United States and other Western nations crack down on criminals, hackers, terrorist organizations and sanctions evaders trying to access global financial markets, financial institutions may respond by reducing their ties to risky sectors, a Treasury Department official said.

Brian Nelson, the Treasury’s undersecretary for terrorism and financial intelligence, said in a speech Sunday at the Pacific Banking Forum in Brisbane, Australia, that de-risking — the indiscriminate cessation of banking relationships with a broad range of customers by financial institutions — has led to a decline in the number and strength of international connections between banks in areas considered high risk.