Featured Product

    FSB Assesses Global Nonbank Financial Intermediation Activity for 2018

    February 04, 2019

    FSB published a report that presents results of the eighth annual monitoring exercise, which assesses global trends and risks from nonbank financial intermediation (NBFI) in 2018. It covers data up to the end of 2017 from 29 jurisdictions, which together represent over 80% of global GDP. With the 2018 report, FSB moves away from the term shadow banking and adopts NBFI, to emphasize the forward-looking aspect of the its work. This change in terminology does not affect either the substance or the coverage of the monitoring exercise.

    The report first introduces the monitoring approach of FSB, including its scope, data, and terminology. It then describes recent innovations in NBFI and provides an overview of the size and growth of all sectors in the financial system, including central banks, banks, public financial institutions, insurance corporations, pension funds, other financial intermediaries (OFIs), and financial auxiliaries.. Next, the report assesses the interconnectedness between non-bank financial entities and banks and between non-bank financial entities and cross-border linkages. Finally, the report focuses on those parts of NBFI where bank-like financial stability risks may arise. The report also features case studies that discuss various aspects of non-bank financial entities and activities in greater detail. These include fintech credit, recent developments in the leveraged loan markets and the role of non-bank financial intermediaries, the non-bank credit cycle, cross-border movements of NBFI systems, and the use of credit default swaps by non-bank financial institutions in EU.

    The main findings from the 2018 monitoring exercise include the following:

    • The narrow measure of NBFI grew by 8.5% to USD 51.6 trillion in 2017, a slightly slower pace than during 2011-16. 
    • Collective investment vehicles with features that make them susceptible to runs continued to drive the overall growth of the narrow measure in 2017. 
    • Securitization-based credit intermediation increased by 9% in 2017, to account for 10% of the narrow measure, primarily driven by growth in trust company assets and securitizations.
    • In 2017, the wider OFIs in aggregate, grew by 7.6% to USD 116.6 trillion in 21 jurisdictions and the euro area, growing faster than the assets of banks, insurance corporations, and pension funds. OFI assets represent 30.5% of the total global financial assets, the largest share on record. Among the OFI sub-sectors, structured finance vehicles grew in 2017 for the first time since the financial crisis.
    • Investment funds and money market funds are the largest OFI sub-sectors that provide credit to banks. In aggregate, banks and OFIs have become marginally more interconnected through credit and funding relationships in 2017, remaining near the 2003-06 levels.


    Related Links

    Keywords: International, Banking, Insurance, Securities, NBFI, Financial Stability, Shadow Banking, Monitoring, FSB

    Related Articles

    APRA Publishes Submission on Fintech and Regtech

    APRA published its submission, to the Senate Select Committee, on financial technology and regulatory technology.

    January 21, 2020 WebPage Regulatory News

    ECB Consults on Guideline on Threshold for Credit Obligations Past Due

    ECB published a draft guideline, along with the frequently asked questions (FAQs), on the definition of the materiality threshold for credit obligations past due for less significant institutions.

    January 20, 2020 WebPage Regulatory News

    BIS Discusses Role of Central Banks in Addressing Climate Change Risks

    BIS published a book that reviews ways of addressing the climate change risks within the financial stability mandate of central banks.

    January 19, 2020 WebPage Regulatory News

    FSB Report Examines Global Nonbank Financial Intermediation Activity

    FSB published the ninth annual report examining the global non-bank financial intermediation activity.

    January 19, 2020 WebPage Regulatory News

    OSFI Publishes Instruction Guide on Solvency Information Return

    OSFI published an instruction guide to assist administrators of pension plans in completing the Solvency Information Return that is required to be filed with OSFI.

    January 17, 2020 WebPage Regulatory News

    EU Amends IFRS 9 Rule, Changes Concern Interest Rate Benchmark Reforms

    EU published Regulation 2020/34 regarding the International Accounting Standard (IAS) 39 and International Financial Reporting Standards (IFRS) 7 and 9.

    January 16, 2020 WebPage Regulatory News

    FDIC and OCC Issue Statement on Heightened Cyber Security Risk

    In response to the heightened cyber-security risk facing the financial services industry and other critical business sectors, FDIC and OCC issued an interagency statement on heightened cyber-security risk.

    January 16, 2020 WebPage Regulatory News

    BCRA Updates Regulation on Capital Requirements and Information Regime

    BCRA updated the rules on minimum capital requirements for financial entities and on certain aspects of the information transparency regime for quarterly and annual supervision.

    January 16, 2020 WebPage Regulatory News

    BoE and FCA Outline Next Steps for LIBOR Transition in 2020

    BoE, FCA, and the Working Group on Sterling Risk-Free Reference Rates (RFRWG) have published a set of documents that outline the LIBOR transition priorities and milestones for 2020.

    January 16, 2020 WebPage Regulatory News

    BIS to Expand Central Bank Membership

    BIS is to expand its central bank membership base and to increase collaboration in its work as a forum for international cooperation and as a hub for central banks and other financial authorities.

    January 14, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4511