On 22 July 2024, the Financial Stability Board issued a progress report regarding enhancing the resilience of non-bank financial intermediation (NBFI).

The progress report describes recent and ongoing work by the FSB to address systemic risk of NBFI. It sets out the main findings of work over the past year to assess and address vulnerabilities in particular NBFI entities and activities that may give rise to systemic risk, and then describes the way forward. Further work is structured in three main areas: in-depth assessment and ongoing monitoring of vulnerabilities in NBFI; the development of policies to enhance NBFI resilience; and monitoring the implementation and assessment of the effects of NBFI reforms. Table 1 in the executive summary of the progress report provides an overview of the planned deliverables under the FSB’s work programme on NBFI.

The FSB has also published a letter from its Chair, Klaas Knot, to G20 Finance Ministers and Central Bank Governors, ahead of the G20 meeting on 25-26 July 2024. In his letter Mr Knot highlights historically high debt levels of both government and private sector borrowers and vulnerabilities in real estate markets and NBFI as areas that deserve continuing attention. In particular, the letter notes that many of the underlying vulnerabilities that contributed to stress in the NBFI sector during recent market incidents are still largely in place. The NBFI progress report highlights a number of challenges hampering progress, including data challenges that impede a full assessment of NBFI vulnerabilities and the formulation of effective policy responses.