Financial Stability Board: The growth rate of "shadow banking" is twice that of traditional banks

Gold Capital reported that the Financial Stability Board (FSB) stated on Tuesday that last year, the share of the non-bank financial sector in global assets increased to 51%, totaling $256.8 trillion, with a growth rate twice that of the traditional banking industry. Non-bank financial intermediaries are commonly referred to as “shadow banking,” including money market funds, hedge funds, private credit institutions, pension funds, and insurance companies. The rapid expansion of the industry has increasingly become a focus of regulatory concern, as they worry about its lack of transparency and the risks that may endanger broader financial markets. The Financial Stability Board, responsible for coordinating financial regulatory rules among G20 economies, pointed out in its annual assessment report that the non-bank financial sector’s share in global assets reached its second-highest level in history, similar to pre-pandemic levels.