Enhancing the Resilience of Non-Bank Financial Intermediation – Progress Report

On 10 November 2022 the FSB published Enhancing the Resilience of Non-Bank Financial Intermediation – Progress Report which provided an update on their workplan to address vulnerabilities with regards non-bank financial intermediation (NBFI) particularly in relation to the potential build-up of liquidity imbalances and their amplification in times of stress.

The FSB’s workplan was formed to address issues identified in their review of events that occurred in March 2020 at the time Covid-19 was declared a pandemic – see Holistic Review of the March Market Turmoil published on 17 November 2020.

In their update the FSB set out details of the progress in assessing and addressing vulnerabilities in the specific areas set out in the workplan, work on a systemic approach to NBFI resilience and policies to address systemic risks in NBFI. In preparing this the FSB has worked closely with national level standard-setting bodies (SSBs) as well as other global bodies such as IOSCO.