The NBFI sector continues to gain relevance and increasingly provides credit intermediation and funding services to the real economy. This results in both direct and indirect interconnections between banks and NBFIs through multiple channels. The Committee is concerned about the growth of these exposures, given the often opaque and quickly evolving nature of the attendant risks. Recent episodes of NBFI distress, including the collapse of Archegos Capital Management and events leading to stresses in government bond markets (eg liability-driven investment strategies), have highlighted vulnerabilities and deficiencies in banks’ risk management practices. The Committee recently conducted a risk horizon scanning exercise related to banks’ NBFI activities and discussed supervisory and policy implications resulting from the recent distress of specific NBFIs. Continue reading…
The message is clear: organisations must be held accountable for their social and environmental footprint. Therefore, it’s inevitable that speaking up becomes the next social…
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