Featured Product

    FSB Report Examines Global Nonbank Financial Intermediation Activity

    January 19, 2020

    FSB published the ninth annual report examining the global non-bank financial intermediation activity. The report presents global trends and risks from non-bank financial intermediation. It compares the size and trends of financial sectors, in aggregate and, across jurisdictions, primarily using the sectoral balance sheet data. The report covers data till the end of 2018 from 29 jurisdictions, which together represent over 80% of the global Gross Domestic Product. FSB focuses on the parts of non-bank financial intermediation that may pose bank-like financial stability risks and/or regulatory arbitrage (that is, the narrow measure of non-bank financial intermediation).

    In addition to examining the trends and risks in global non-bank financial intermediation, the report assesses the interconnectedness among financial entities, both within and across borders. The report features case studies that discuss different aspects of non-bank financial intermediation in greater detail. They include flow and valuation effects in the investment fund sector, the role of non-bank financial institutions in providing financing to commercial real estate, and the role of investment funds in cross-border capital flows. The main findings from the 2019 monitoring exercise include the following:

    • Total global financial assets grew by 1.4% to USD 378.9 trillion in 2018, driven largely by banks. Assets of insurance corporations and pension funds remained largely unchanged, while those of other financial intermediaries declined marginally as a result of stock market declines in late 2018 and, to a lesser extent, outflows from some of these entities. Other financial intermediaries include all financial institutions that are not central banks, banks, insurance corporations, pension funds, public financial institutions, or financial auxiliaries.
    • The narrow measure of non-bank financial intermediation grew by 1.7%, to USD 50.9 trillion in 2018, significantly slower than the 2012-17 average annual growth rate of 8.5%. It now represents 13.6% of the total global financial assets. Entities engaged in securitization-based credit intermediation, such as securitization vehicles, remained unchanged in terms of nominal value in 2018, representing 9.3% of the narrow measure. Collective investment vehicles with features that make them susceptible to runs grew by 0.4% in 2018, much slower than the 11% average annual growth rate from 2012-17. At the end of 2018, such collective investment vehicles represented 72% of the narrow measure. 
    • Lending by other financial intermediaries continued to grow and their lending assets grew by 3.0% in 2018, largely driven by the euro area. However, banks remain the single largest source of credit intermediation.
    • Interconnectedness between banks and other financial intermediaries through credit and funding relationships remains largely unchanged since 2016. Investment funds and money market funds remain the largest other financial intermediary providers of credit to banks.

     

    Related Links

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

    Related Articles
    News

    EC Issues Regulation on Adjustments to K-Factor Coefficients Under IFR

    The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).

    January 20, 2022 WebPage Regulatory News
    News

    OSFI Issues Results of Pilot on Climate Risk Scenario Analysis

    The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.

    January 20, 2022 WebPage Regulatory News
    News

    ECB Issues Opinions on Green Bonds Standard and CRR Proposals

    The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.

    January 19, 2022 WebPage Regulatory News
    News

    ESRB Explores Policy Response to Risks Arising from Digitalization

    The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.

    January 18, 2022 WebPage Regulatory News
    News

    EU Authorities Address COVID-19 Reporting, MCD, and PSD2 Issues

    The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.

    January 17, 2022 WebPage Regulatory News
    News

    FI Publishes Multiple Regulatory and Reporting Updates

    The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.

    January 17, 2022 WebPage Regulatory News
    News

    BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance

    The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.

    January 16, 2022 WebPage Regulatory News
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    News

    MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.

    January 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7875