City Research Online

Abstract

Non-bank financial intermediation (NBFI) has undergone substantial growth in recent years, driven by financial and technological innovation, asset accumulation, macroeconomic changes, and demographic trends, but also by the regulatory reforms which have impacted banks’ ability to provide traditional intermediation services, from lending to deposit-taking, and the payment system. This chapter reviews the growth of NBFI from different perspectives. First, we consider definitions based on activities, entities, and infrastructures. Non-bank financial intermediaries (NBFIs) differ from banks but are also closely linked to banks’ activities and organisational structures. We then look at the role of NBFIs in the financial system, focusing on their role in lending markets. Finally, we consider the risks and vulnerabilities of the sector and potential spillover effects, as evidenced by recent episodes of turbulence.

Publication Type:	Book Section
Subjects:	H Social Sciences > HG Finance
Departments:	Bayes Business School Bayes Business School > Finance
SWORD Depositor:	Symplectic Administrator

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