non-bank financial institutions (NBFI) News

Germany Tells Insurers to Vet Private Asset Deals More Carefully

Germany’s financial watchdog is pushing insurers to step up scrutiny of private credit investments after several firms were stung by losses on loans to real estate companies. BaFin, which oversees more than 500 insurers, is asking 30 to 40 firms …

G20 Watchdog Urges Governments to Address Non-Bank Financial Risks

The Financial Stability Board (FSB) on Wednesday pitched recommendations for governments to reduce risks around hedge funds, insurers and other non-bank financial intermediaries, which now account for almost half of global financial assets. The sector of non-bank financial intermediation has …

Bank of England Finds Non-Bank Financial Firms Pose Wider Risks in Crisis Periods

Non-bank financial institutions such as hedge funds remain vulnerable to a sudden financial shock and would not all be able to access the funding they would need in such a crisis, the Bank of England said on Friday. Announcing the …

Shadow Banks to Face Reins on Leverage Following Watchdog Probe

Global watchdogs will move to rein in leverage at non-banks early next year, the Financial Stability Board promised on Monday, more than a year after its chair signaled a probe into mounting borrowings at hedge funds, private capital markets and …

Vulnerabilities in Non-Banks Leave Door Open to ‘Shocks’, G20 Watchdog Says

Patchy progress on implementing reforms to make money market funds and other types of “non banks” safer has left the global financial system vulnerable to more shocks, the G20’s risk watchdog said on Monday. The Financial Stability Board said that …

More Reforms Needed to Tackle Shadow Banking’s ‘Hidden Leverage’: BoE Regulator

The booming non-bank financial industry has created excessive leverage that poses financial stability risks, and more reforms are needed to tackle it, including improving disclosure of positions, a Bank of England regulator said on Thursday. Non-bank financial institutions (NBFIs), including …

Insurers to Build Private Credit Exposure in Coming Years: Moody’s

Global insurers plan to invest further in the coming years in the growing but opaque private credit market, according to a new report by Moody’s Ratings. In a survey this week of the world’s largest insurers, Moody’s found that nearly …

Global Basel Committee Bolsters Rules for Supervising Banks, Non-Bank Sector

The world’s forum for banking regulators on Thursday tightened up its rulebook to focus better on spotting risks from climate change, the rise of non-banks, and digitalisation of finance. The Basel Committee on Banking Supervision, made up of banking regulators …

Citi’s CEO Fraser Wary of Insurance Giants’ Role in Private Credit

Citigroup Inc. Chief Executive Officer Jane Fraser warned that there’s a risk to the growing number of insurers piling funds into direct lending opportunities. It’s one of many risks tied to the rise of the private credit industry that Fraser’s …

Bank of England Builds ‘Proactive Case’ to Regulate Non-Bank Sector

Regulators need broader oversight of financial firms to prevent a crisis in the vast non-bank sector turning into a credit crunch and wreaking havoc on the economy, Britain’s central bank said on Monday. The Bank of England was forced to …