A basic reason for the enhanced regulation faced by banks is the importance of protecting retail depositors, in view of the deposit-based funding structure of banks and the inherent maturity mismatch between short-term deposit liabilities and long-term illiquid assets such as loans to corporates and households.
However, the scale of the non-bank financial sector and the scope for bank-like maturity and liquidity mismatches between the liabilities and assets of some types of investment funds has given rise to increased regulatory scrutiny in recent years. BIS central bankers’ speeches  1  Non-bank financing amounts to $ trillion globally.