The 2008 global financial crisis, the March 2020 market turmoil, and more recent episodes of market stress have demonstrated that NBFI can create or amplify systemic risk and underscored the need to take policy measures to enhance the sector’s resilience.

The work carried out to date largely completes the original policy elements of the NBFI work programme that were agreed in the aftermath of the March 2020 market turmoil. The focus now is on:

  • ongoing monitoring and in-depth assessment of specific vulnerabilities in NBFI;
  • further work to address data challenges;
  • information sharing and supervisory discussions on authorities’ policy approaches to enhance NBFI resilience; and
  • monitoring implementation of the agreed policies and evaluating their effects.