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4d ago

FSB Report: Nonbank Finance Tops Half of Global Assets as Growth Outpaces Banks

Regulators prepare stricter oversight in response to opaque, bank‑like risks.

A stock broker looks at his screens in front of the share price index DAX graph following the shares of Credit Suisse hit a record low in a rout of European bank stocks, as investor concerns about sector stresses triggered by Silicon Valley Bank's implosion deepened, at the stock exchange in Frankfurt, Germany, March 16, 2023. REUTERS/Kai Pfaffenbach/File Photo
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Overview

  • Global nonbank financial assets rose 9.4% in 2024 to $256.8 trillion, reaching 51% of total financial assets, compared with 4.7% growth for banks.
  • The bank‑like segment of nonbanks expanded about 12% to $76.3 trillion, increasing interconnections that can transmit shocks across markets and jurisdictions.
  • The FSB flagged severe data gaps in private credit and made assessing private assets’ potential stability impact a priority for the coming year.
  • The Bank of England launched a stress test of global private equity and private credit, and recent U.S. bankruptcies including Tricolor and First Brands have sharpened scrutiny of lending standards.
  • U.S. officials are exploring ways to bring some nonbanks into oversight, including OCC trust charters and a tailored Fed “skinny” master account, with a final account rule expected by the end of next year.