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Matthias Knab, Opalesque:

The Financial Stability Board (FSB) says nonbank financial intermediation (NBFI) expanded sharply in 2024, growing at about double the pace of the banking sector and lifting the NBFI share of global financial assets back to roughly pre-pandemic levels. In its annual Global Monitoring Report on Non-Bank Financial Intermediation, the FSB estimates the sector rose 9.4% in 2024 to USD 256.8 trillion, while banking assets grew 4.7%. The FSB attributes the strong expansion to buoyant risk appetite amid rising asset prices and lower policy rates. Where the growth was concentrated

The report covers developments across 29 jurisdictions representing more than 90% of global GDP and shows broad-based growth across NBFI subsectors. "Other financial intermediaries" (a bucket that includes money market funds (MMFs), hedge funds, other investment funds, trust companies, and structured finance vehicles (SFVs)) was the fastest-growing segment, rising 11% to USD 169.4 trillion. Pension fund assets increased 7% and insurance corporation assets grew 6%, indicating that the expansion was not confined to a single corner of the nonbank ecosystem. The "narrow measure" and stability signals

A key focus for market participants is the FSB's "narrow measure" of NBFI: entities assessed by authorities as engaging in credit intermediation activities that may pose bank-like financial stability risks. This narrow measure increased 12% to U......................

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