The analysis conducted and the issues identified in this report suggest that the efforts of the international regulatory community to reinforce the resilience of NBFI, while preserving its essential functions and benefits, should focus on three main areas:
- In the short-term, work to examine and, where appropriate, address individual risk factors and specific markets that contributed to amplification of the shock. This includes analysing whether mitigants put in place after the 2008 financial crisis have worked as intended, and assessing implementation progress on related G20 reforms;
- Enhancing the understanding of systemic risks in NBFI and the financial system as a whole, including the interactions between banks and non-banks, the resilience of the NBFI sector and cross-border spill-overs; and
- Assessing policies to address systemic risks in NBFI, including the adequacy of policy tools and the concept and desired level of resilience in NBFI. These efforts to strengthen resilience in the NBFI sector should not compromise the resilience in other parts of the system or the important role that NBFI plays in financing the real economy.
The full report is available at https://www.fsb.org/wp-content/uploads/P171120-2.pdf