1、Regulatory focus on non-bank finance:considerations for financial services providers2|Regulatory focus on non-bank finance:considerations for financial services providersForewordMore than 15 years after the 2008 global financial crisis,the financial services landscape has transformed significantly.T

2、echnological advancements,new entrants into the market,and unforeseen events like the COVID-19 pandemic and the March 2023 banking turmoil have prompted policymakers to evaluate the financial services market and address new vulnerabilities to financial stability.One area of change is the growth of n

3、on-bank financial institutions(NBFIs)in proportion to the financial sector.By one estimate,NBFIs grew 8.5%in 2023,outpacing banking sector growth at 3.3%,and raising total global financial assets held by NBFIs to 49.1%.1 This growth has been fueled in part by a lack of available credit and capital f

4、rom conventional market participants.Additionally,a 2024 EY survey found that 71%of corporate treasurers faced challenges securing bank funding,with 52%turning to private equity and 48%to private credit.2 These trends,along with recent market volatility,have heightened regulatory focus on the risks

5、NBFIs pose to financial stability.3This paper examines the growth of NBFIs and the implications of that growth for banks,non-bank lenders and regulators.It offers EY insights on the efforts of global bodies like the Financial Stability Board(FSB),which monitors and makes recommendations about the gl

6、obal financial system,and regional bodies like the European Union(EU),as well as key jurisdictions like the United Kingdom(UK)and United States(US),to measure,monitor,and,if appropriate,mitigate the risks posed by NBFIs to financial stability.It also aims to inform traditional financial institutions