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As NBFI sector grows, so do its risks and benefits – Knot

Former FSB chair discusses implications of sector’s increasing dominance

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Although the rapid growth of the non-banking sector brings challenges for supervisors, it also comes with benefits, Klaas Knot has said.

Speaking at a conference hosted by the National Bank of Austria on October 5, the former chair of the Financial Stability Board and former president of the Netherlands Bank said non-bank financial institutions (NBFIs) now represented more than half of total global financial assets. Knot said he believed the sector might be able to absorb shocks without causing

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