Non-bank financial intermediation (NFBI) – encompassing a broad range of capital sources, including broker-dealers, private funds, and open-end funds (OEFs) – is vital for the financing of the real economy, serving as a critical complement to the traditional banking sector. NBFI is generally most active in jurisdictions, like the United States, with robust capital markets that power investment in large and small-and-medium sized enterprises and which have high levels of retail and institutional investor participation. Given the importance of NBFI, the Financial Stability Board (FSB) – an international body composed of the world’s most important finance ministries, central banks and … Read more