Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

A senior European Central Bank official has said the “remarkable” growth of private funds and other sources of finance outside the regulated banks is the biggest threat to the stability of the Eurozone’s financial system.

“There are certainly caution lights in front of us,” Elizabeth McCaul, an ECB supervisory board member, told the Financial Times.

“The most prevalent one is the area into which we likely have the least visibility and where things can move…