Non-bank financial intermediaries and financial stability

The heft of non-bank financial intermediaries (NBFIs) in the financial system has grown significantly since the Great Financial Crisis. BIS looks at the main drivers and consequences of their ascent, focusing on NBFIs' effect on the demand for and supply of liquidity. Hence, BIS develops a framework of systemic-risk propagation through NBFIs that allows to provide a unified reading of market disruptions during the Covid-19 pandemic.

Please find the working paper here.