The comprehensive monitoring of global trends, vulnerabilities, and innovations of the nonbank financial intermediation (NBFI) sector is a key part of the FSB’s ongoing efforts to enhance financial system resilience.
This report describes broad trends in financial intermediation across 29 jurisdictions that account for over 90% of global GDP, before narrowing its focus to the subset of NBFI activities that may be more likely to give rise to vulnerabilities. To complement the monitoring of vulnerabilities, the report also presents information on the availability of policy tools, this year for securitisation activities.
More granular data on other financial institutions’ use of wholesale funding and for finance companies’ loan assets, were collected for the first time in this report.
This year’s report includes a case study on bank-NBFI interconnectedness, which highlights three main forms of linkages:
- funding and deposit relationships, where non-banks place deposits with banks;
- lending, repo and other credit exposures from banks to non-banks; and
- holdings of bank-issued securities by investment funds, insurers and pension funds.
The case study includes quantitative analysis of bank-NBFI interconnectedness by instrument type, and portfolio overlap.
The report also highlights data challenges related to private finance and credit in statistical and regulatory reporting.
