Today NBFIs hold more than half of total financial assets in the euro area. For central banks, the analysis of NBFIs is therefore very important. Recently, the non-bank sector has been carefully considered by the ECB in its Strategy Review,18 which focused its analysis on how NBFIs affect the transmission of monetary policy.
As NBFIs also have relevant implications for financial stability, they are constantly monitored by the FSB.19 Some of their fragilities became very apparent during the episodes of financial turbulence connected to the COVID-19 crisis. Central banks and governments intervened promptly, avoiding an escalation.