The size of the Non-Bank Financial Institutions (NBFI) sector across the globe decreased in 2022; the first notable decrease since 2009, which can be largely attributed to the impact of higher interest rates on asset valuations.

Since 2017 investment funds have driven changes in NBFI asset levels, and this continued to be the case in 2022, as investment funds led the decline in NBFI assets.

Banks continued to be net recipients of funding from the NBFI sector, although this funding has been decreasing since 2013. In contrast, some NBFI entities’ use of funding from banks has increased.

FSB, January 2024 - Read the full report for more details.

See also:

• NBFI Monitor (ESRB)
• Key Linkages between Banks and the Non-Bank Financial Sector (ECB, Financial Stability Review, May 2023)
• Non-Bank Financial Sector Vulnerabilities Surface as Financial Conditions Tighten (IMF, April 2023)