At the same time as we need to chart a course out of the pandemic, we need to strengthen resilience in the non-bank financial intermediation, or NBFI, sector. A sector that now represents almost half of global financial assets and is evolving rapidly. Enhancing NBFI resilience offers significant benefits, not least during the transition to a post-Covid world.
First and foremost, it will contribute to a more stable provision of financing to the economy. Second, it will enhance the ability of the financial system to absorb different types of shocks. And a resilient NBFI sector reduces the need for the types of extraordinary central bank interventions we witnessed in March 2020. The FSB is therefore working on vulnerabilities in specific NBFI areas.