Schnabel from the ECB factors out the position of shadow banks in passing the coverage on

© Reuters. The 29th Frankfurt European Banking Congress (EBC) takes place in Frankfurt

FRANKFURT (Reuters) – The European Central Bank should closely monitor the growing role of shadow banks in relaying the ECB's policies to the money markets as many of these companies do not have access to central bank cash, ECB board member Isabel Schnabel said Monday.

"In contrast to banks, these market participants often have no access to central bank business," said Schnabel.

"If the transmission were weakened via the money market rates or the interest rates were decoupled from political intentions, this could have an impact on the future implementation of monetary policy," she said.

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