Why has NBF intermediation and cross-border activity grown so much?
Several factors have contributed, but let me mention just two that are especially relevant to global flows: –  first, the Basel reforms adopted after the global financial crisis led banks to deleverage, thereby reducing non-core assets and cross-border lending;  –  second, low interest rates in developed markets encouraged investors to diversify their assets by investing in emerging markets, often through dedicated funds (or through increased allocations to emerging markets by globally active funds).