Non-bank sector
Stress-test findings should be combined – BoE’s Benjamin
Bank’s director of financial stability strategy emphasises importance of “joining the dots”
Fintechs’ share in Dutch NBFI lending doubled in two years – DNB study
However, €2.3 billion dispersed by firms still represents only 0.7% of all loans
FSB launches plan to rein in non-bank leverage
Limited data and uneven regulatory mandates pose major challenges
Assets held by risky non-banks grew to record high in 2023 – FSB
Surging asset prices caused sector to grow more than twice as fast as banks
FSB urges non-banks to improve liquidity risk management
Report lists eight recommendations on how funds can answer margin and collateral calls
BoE’s non-bank liquidity facility to open for applications in 2025
Other central banks have shown “lots of interest”, says deputy governor
BoE stress test highlights liquidity risks in non-banks
“First-of-its-kind” scenario exercise reveals how repo financing could be insufficient during shocks
ECB vice-president warns of US AI bubble
Now is not the time to deregulate banks, says Luis de Guindos
Implementation of regulatory reforms ‘uneven’, says FSB
Annual report reviews efforts over past year to adopt Basel III and tackle risks in non-bank sector
Central banks need to monitor non-bank risks more – Bailey
Governor expects BoE to release results of stress exercises on sector by end of year
US auto loan delinquencies focused in new lending – study
Lower credit standards and higher payments, not interest rates, are key contributing factors
‘Unpredictable’ risk driven by AI, geopolitics – Lagarde, Buch, Rehn
European supervisors call for caution – and more authority – at ESRB annual conference
Yellen highlights systemic risks from rise in non-bank lending
Treasury secretary says institutions’ share of credit now exceeds that of banks
BIS says carry trade unwind is part of broader pattern
Multi-strategy hedge funds drive spillovers across asset classes, analysis finds
Financial Stability Benchmarks 2024 – model banks analysis
Further breakdowns of the data highlight patterns in governance, regulatory reform and cyber risk
All eyes on the Fed
The US central bank faces a challenging path to fulfil its mandated goals
Financial Stability Benchmarks 2024 report – seeking sounder banks
Banking regulation remains a work in progress for many central banks, but staffing is a problem
Triggers of August market ‘flare-up’ still in place, BIS warns
Leveraged positions remain at risk of sudden unwinding, as margin calls play amplifying role
Non-banks generally seen as lesser threat than banks
Central banks much more likely to want new tools to tackle risks in the banking sector
Monetary policy has less impact on private credit – Fed research
Funding, ‘dry powder’ and fund returns for asset class remain high amid policy tightening
Hedge funds and dealers have outsized price impact – BoE paper
Mutual funds have smaller impact so may not play central role in fire sales, authors say