The next financial crisis may start outside the banks
The warning signs are multiplying and the window for preventive action is narrowing, writes Stijn Claessens
The greatest threats to financial stability may no longer lie within the banking system. An April G30 report, Nonbank financial intermediation and financial stability: a perfect storm in the making?, co-led by Agustín Carstens and Klaas Knot, argues that risks are increasing in non-bank financial intermediation (NBFI), which now accounts for more than half of global financial intermediation. NBFI brings real benefits by diversifying funding sources, broadening access to finance, and encouraging
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