The Financial Stability Board (FSB) has published the results of its seventh annual global shadow banking monitoring exercise.
The report covers data up to end-2016 from 29 jurisdictions, including Luxembourg for the first time, which together represent over 80% of global GDP. The report also includes, for the first time, a classification of non-bank financial entities in China into the FSB’s narrow measure of shadow banking. This assessment was conducted on a conservative basis and may be further refined as more granular data becomes available and in light of further analysis.
The main observations from the 2017 monitoring exercise include:
- monitoring universe of non-bank financial intermediation – this measure of all non-bank financial intermediation grew in 2016 at a slightly faster rate than in 2015 to an aggregate $160 trillion;
- insurance corporations’ and pension funds’ assets have increased since 2009 to $29 trillion and $31 trillion respectively, each now separately representing around 9% of total global financial assets;
- other financial intermediaries (OFIs) assets as a whole rose by 8% to $99 trillion in 2016, faster than the assets of banks, insurance corporations and pension funds, but not as fast as those of central banks;
- loans extended by OFIs grew in aggregate by 1.6% in 2016 in 21 jurisdictions and the euro area, continuing the trend observed since 2011;
- OFIs have overall become less reliant on wholesale funding and repo, while banks’ overall reliance on wholesale funding and repo as a source of funding has changed little since 2011; and
- aggregate interconnectedness between banks and OFIs through credit and funding relationships were at 2003-2006 levels.
View FSB publishes Global Shadow Banking Monitoring Report 2017, 5 March 2018