The Financial Stability Board has published the Global Monitoring Report on Non-Bank Financial Intermediation (NBFI), which analyzes developments in the sector recorded in 2021.
The Report describes general Financial Intermediation trends in 29 jurisdictions which account for around 80% of global GDP, focusing attention on NBFI activities that may be more likely to create vulnerabilities.
The main results are:
- The NBFI sector showed a strong growth of 8.9% in 2021, mainly driven by investment funds. These benefited from the Economic recovery and saw both Inflows and Higher Valuations across a broad range of Investments;
- The narrow measure of the NBFI sector – comprising entities involved in credit intermediation activities that may pose financial stability risks – reached $67.8 trillion in 2021, representing 28.3% of total NBFI assets and 14.1% of the total global financial assets;
- Since 2013, the NBFI sector’s links to the banking sector through loans and exposures have continued to decrease. However, the sector continued to be a net provider of liquidity in the Repo market and its net asset level rallied sharply in 2021;
- The Insurance and Pension fund sectors are responsible for a quarter of the overall growth Worldwide in Assets managed by the NBFI sector.