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

    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
    News

    HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets

    The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.

    January 12, 2022 WebPage Regulatory News
    News

    FCA Registers Securitization Repositories; PRA Issues 2022 Priorities

    The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.

    January 12, 2022 WebPage Regulatory News
    News

    EC Regulation Sets Out Methods for Measuring K-Factors Under IFR

    The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.

    January 11, 2022 WebPage Regulatory News
    News

    BIS Studies How Platform Models Impact Financial Stability & Inclusion

    The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.

    January 10, 2022 WebPage Regulatory News
    News

    CBE Issues Additional Measures to Ease Disruptions from Pandemic

    The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.

    January 10, 2022 WebPage Regulatory News
    News

    ESAs Publish List of Financial Conglomerates for 2021

    The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.

    January 07, 2022 WebPage Regulatory News
    News

    APRA Licenses Two More Banks, Reduces Committed Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) updated the list of authorized deposit-taking institutions, granting license to Barclays Bank PLC and Crédit Agricole Corporate and Investment Bank to operate as foreign authorized deposit-taking institutions under the Banking Act 1959.

    January 07, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7866