FSB to tackle systemic risk in non-bank sector

The Bank for International Settlements, Basel
The Bank for International Settlements, Basel
Photo: Ulrich Roth

The Financial Stability Board is pressing ahead with action to curb risks in the non-bank sector, with new regulation likely to be on the agenda.

In a report setting out its “holistic review” of the market turmoil around Covid-19, the FSB is clear that non-bank financial intermediation, or NBFI, played a central role in amplifying the shock.

However, policy-makers widely view non-banks as an important source of funding for the economy. The FSB has tracked rapid growth in the sector since the

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