Featured Product

    FSB Report Studies Nonbank Financial Intermediation Sector in Americas

    June 30, 2020

    FSB published a report that presents results of the fifth regional monitoring exercise of the non-bank financial intermediation (NBFI) sector of the 16 participating jurisdictions in Americas. FSB's Regional Consultative Group (RCG) for the Americas conducted this exercise to assess the size, structure, and recent trends of the NBFI sector in the region, recognizing that this information is crucial to identify potential risks to financial stability at the local jurisdiction level and to identify risks arising from potential cross-border linkages. The report concludes that total regional NBFI assets, reached over USD 127 trillion at the end of 2018, experiencing only minimal growth of 0.15% during 2018, which contrasts with an annualized growth of 5.6% between 2012 and 2017. The narrow measure, which is NBFI activities that may pose bank-like financial stability risks, reached USD 22.9 trillion at the end of 2018, up from USD 22.1 trillion at the end of 2017.

    The onshore Monitoring Universe of Non-bank Financial Intermediaries (MUNFI), comprised of Other Financial Intermediaries (OFIs), insurance companies and pension funds’ assets declined to USD 72.9 trillion at the end of 2018, down from USD 73.2 trillion at the end of 2017. The offshore MUNFI total assets were USD 7.9 trillion at the end of 2018, down from USD 8.2 trillion at the end of 2017. The exercise found that financial assets belonging to entities that have been registered as prudentially consolidated into a banking group rose to USD 2.8 trillion at the end of 2018, with all belonging to the OFIs sector—a 5.2% annual growth. Overall, the aggregate data shows a slowdown in total OFI assets, largely driven by the largest jurisdiction (United States). However, for most jurisdictions at the individual level, the sector presents positive growth rates. With regard to financial intermediaries’ interconnectedness data and data collected to assess the potential risks to financial stability, including risk concentration (risk metrics) associated with narrow measure entities or activities, the submission rate is still very low and quality may be insufficient for some of the reporting jurisdictions. Therefore, these present important areas for improvement in the future. 

    In particular, the continuation of the annual exercise, and its improvements on the closing of data gaps and the risk-measurement, are considered important areas for further development. While the Working Group continues to take steps to align the RCG Americas monitoring exercise with the FSB Global Exercise, the results show that important data gaps are still largely present. In addition, there is some heterogeneity in the understanding of the FSB methodology, due to which some corrections have been discussed bilaterally with jurisdictions. Going forward, the data collection process may benefit from increased cooperation and interaction among international authorities with the aim of closing data gaps and increasing consistency. Risk metrics data collection is left as an area for future work. To continue improving the monitoring and assessment of NBFI risks within the region, the Working Group recommends: 

    • To continue enhancing and encouraging participation by jurisdictions in the region and improving data collection coverage and quality for future exercises
    • To improve on risk metric data collection and analysis in the next report

     

    Related Links

    Keywords: International, Americas, Banking, Insurance, Pensions, Securities, NBFI, Non-Bank Financial Intermediation, Data Gaps, RCG Americas, FSB

    Related Articles
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8699