The European Systemic Risk Board (ESRB) has published the EU Non-bank Financial Intermediation Risk Monitor 2024 (NBFI Monitor). This edition of the annual series highlights the key cyclical and structural risks associated with non-bank financial intermediation, specifically investment funds and other financial institutions (OFIs), in 2023.
The NBFI Monitor 2024 also provides an assessment of risk in the crypto ecosystem. Although the crypto ecosystem is exposed to certain unique risks, the business models of a number of crypto-asset intermediaries resemble those of regulated financial institutions. These businesses tend to offer services such as crypto-asset trading, investing, lending and borrowing. Accordingly, they engage in essentially the same activities as traditional financial actors, i.e. credit intermediation, liquidity and maturity transformation in addition to using leverage, while remaining less advanced in terms of regulatory coverage. Crypto-assets and associated intermediaries are covered in the report insofar as the type of financial intermediation they provide is exposed to similar risks and vulnerabilities to those faced by traditional non-bank intermediaries such as investment funds and OFIs.
[icon color="Accent-Color" size="regular" icon_size="" image="fa-file-pdf-o"] NBFI Monitor, June 2024
See also:
- Macroprudential Policies for Non-Bank Financial Intermediation (NBFI) (European Commission)
- Global Monitoring Report on Non-Bank Financial Intermediation 2023 (FSB, December 2023)
- Key Linkages between Banks and the Non-Bank Financial Sector (ECB, Financial Stability Review, May 2023)
- Nonbank Financial Sector Vulnerabilities Surface as Financial Conditions Tighten (IMF, April 2023)
