Non-banks taking on significant ‘hidden leverage’, FSB warns
Off-balance-sheet positions have grown, but data on many parts of the system is poor
Non-banks are using substantial leverage in their operations, likely adding to financial vulnerabilities, but assessing the scale of the issue is hard, the Financial Stability Board warns.
The level of debt issued by the non-bank financial intermediation (NBFI) sector is “significant”, the FSB says in a report on leverage in non-banks, published today (September 6). The report estimates that NBFI debt is similar in scale to household debt, but tends to be highly concentrated in certain types of
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