Posted on Dec. 2021 at 15:14Updated Dec 6, 2019 2021 at 18:24
With “2,000 billion dollars in assets”, management companies, investment funds and institutional investors now represent “half of the global financial system”. And “their growth has been much faster than that of banks over the past decade,” said Claudio Borio, head of the monetary and economic department of the Bank for International Settlements (BIS). To the point of being able to destabilize the world markets, as during the stock market crash caused by the pandemic in the spring of 2020.
Faced with this finding, the Basel organization, which plays the role of central bank of national central banks, calls for more regulation of non-banking financial institutions (“non-banking financial institutions”, or NBFI) in its latest quarterly report published on Monday. . For these companies and organizations previously qualified as “shadow banking”, “it is important to have a systemic or macroprudential approach”, explained Claudio Borio during a conference call.