Featured Product

    FSB Report Examines Trends in Non-Bank Intermediation in Americas

    December 06, 2021

    The Financial Stability Board (FSB) published a report that presents results of the sixth non-bank financial intermediation monitoring exercise in the Americas. The exercise assesses the size, structure, and recent trends of the non-bank financial intermediation sector in the region and has been prepared by the FSB Reginal Consultative Group for the Americas. The report also includes recommendations for improving the monitoring of this sector.

    The report concludes that total financial assets in the region reached over USD 140 trillion at end-2019, with growth of 10.1% during 2019, faster than the annualized growth of 3.6% for the period between 2013 and 2018 and contrasting with the negligible annual contraction of 0.2% registered during 2018. The growth in total assets in 2019 was largely driven by the largest jurisdiction (United States), but growth was positive also in most other jurisdictions in the region. The narrow measure, which covers the non-bank financial intermediation activities that may pose bank-like financial stability risks, reached USD 27.7 trillion at end-2019, up from USD 24.4 trillion at end-2018, a faster growth rate (13.7%) than that observed in previous years (the compound growth rate for the 2013- 2018 period was 3.7%). Within the narrow measure, the fastest growth was in collective investment vehicles with features that make them susceptible to runs, which grew by 17.1% in 2019 and made up 76.2% of the narrow measure at end-2019. 

    The COVID-19 related market turmoil highlighted the structural vulnerabilities within the financial markets and stressed the role that interconnectedness, within the financial system, can play in the propagation and amplification of shocks. Specific to non-bank financial intermediation, the impact of the COVID-19 pandemic on market liquidity in the spring of 2020 re-emphasized that not only is it important to monitor developments in the non-bank financial intermediation sector, but also to understand how the sector interconnects with the rest of the financial system, including banks and across borders. Ultimately, this will help jurisdictions to better assess how vulnerabilities and shocks within the non-bank financial intermediation sector may lead to financial instability. The monitoring exercise is based on time series financial sector data from 14 participating jurisdictions, representing about 97% of GDP of the Americas’ region. The report also includes some recommendations to improve monitoring of the non-bank financial intermediation sector going forward. The continuation of the annual exercise, and its improvements on the closing of data gaps and risk measurement, are considered important areas for further development. It is also strongly suggested to update the data collection process and its granularity to align it more closely to the global monitoring exercise.

     

    Related Links

    Keywords: International, Americas, Banking, Securities, Non-Bank Financial Intermediaries, NBFI, Credit Risk, Securitization, Financial Stability, Data Collection, Data Gaps, FSB

    Related Articles
    News

    APRA Publishes Results of Climate Risk Self-Assessment Survey

    The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.

    August 04, 2022 WebPage Regulatory News
    News

    ACPR Publishes Updates Related to CRD IV and Covered Bonds

    The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).

    August 03, 2022 WebPage Regulatory News
    News

    BIS Paper Contributes to Debate on Regulating NBFIs and Big Techs

    The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.

    August 03, 2022 WebPage Regulatory News
    News

    EIOPA Publishes Guidance on Climate Change Scenarios in ORSA

    The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).

    August 02, 2022 WebPage Regulatory News
    News

    EBA and ECB Respond to Proposals on Sustainability Disclosures

    The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.

    August 01, 2022 WebPage Regulatory News
    News

    BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks

    A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.

    July 29, 2022 WebPage Regulatory News
    News

    EBA Publishes Multiple Regulatory Updates for Regulated Entities

    The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.

    July 29, 2022 WebPage Regulatory News
    News

    EIOPA Issues SII Taxonomy and Guide on Sustainability Preferences

    The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.

    July 29, 2022 WebPage Regulatory News
    News

    EESC Opines on Proposals on CRR and European Single Access Point

    The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).

    July 29, 2022 WebPage Regulatory News
    News

    HM Treasury Publishes Multiple Regulatory Updates in July 2022

    HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.

    July 29, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8424