On 4 February 2019, the Financial Stability Board (FSB) published the Global Monitoring Report in Non-Bank Financial Intermediation 2018. The report sets out the results of the FSB’s most recent annual monitoring exercise that assesses global trends and risks from non-bank financial intermediation. It covers data up to end-2017 from 29 jurisdictions, which together represent over 80% GDP. The report reflects the FSB’s recent decision to move away from the term “shadow banking”. The term “non-bank financial intermediation” (NBFI) is used in this report and will be used in future reports.
The FSB’s monitoring exercise compares the size and trends of financial sectors in aggregate and across jurisdictions based primarily on sectoral balance sheet data. It focuses on those parts of NBFI that perform economic functions which may give rise to bank-like financial stability risks (i.e. the narrow measure of NBFI).
A key finding from the recent monitoring exercise is that the narrow measure of non-bank financial intermediation grew by 8.5% to $51.6 trillion in 2017, a slightly slower pace than from 2011-16. Since 2011, the Cayman Islands, China, Ireland and Luxembourg together account for over two-thirds of the dollar value increase.