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John Schindler, General Secretary of the Financial Stability Board (FSB), joins Monetary Matters to discuss the rise of non-bank financial intermediation (NBFI), sometimes referred to as “shadow banking.” There are signs that NBFI leverage is growing and NBFI data is not as transparent or available as in the traditional banking system, and these two forces may pose financial stability risks. Schindler shares the FSB’s recommendations for how to ameliorate these potential risks.

From the FSB: The Financial Stability Board (FSB) coordinates at the international level the work of national financial authorities and international standard-setting bodies in order to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies. Its mandate is set out in the FSB Charter, which governs the policymaking and related activities of the FSB.

Reports and recommendations:

Final FSB Report on NBFI Leverage (web link):

https://www.fsb.org/2025/07/leverage-in-nonbank-financial-intermediation-final-report/

Final FSB Report on NBFI Leverage (pdf): https://www.fsb.org/uploads/P090725-1.pdf

Scihndler’s Eurofi speech: https://www.fsb.org/2024/09/building-bridges-the-case-for-better-data-and-coordination-for-the-non-bank-sector/

Global Monitoring Report on Non-Bank Financial Intermediation 2024: https://www.fsb.org/2024/12/global-monitoring-report-on-non-bank-financial-intermediation-2024/

2021 Report on Money Market Resilience: https://www.fsb.org/2021/10/policy-proposals-to-enhance-money-market-fund-resilience-final-report/

Revised Policy Recommendations to Address Structural Vulnerabilities from Liquidity Mismatch in Open-Ended Funds: https://www.fsb.org/2023/12/revised-policy-recommendations-to-address-structural-vulnerabilities-from-liquidity-mismatch-in-open-ended-funds/

Liquidity Preparedness for Margin and Collateral Calls: Final report: “https://www.fsb.org/2024/12/liquidity-preparedness-for-margin-and-collateral-calls-final-report/”

“High-level Recommendations for the Regulation, Supervision and Oversight of Global Stablecoin Arrangements: Final report”: https://www.fsb.org/2023/07/high-level-recommendations-for-the-regulation-supervision-and-oversight-of-global-stablecoin-arrangements-final-report/

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Non-Bank Leverage & Financial Stability | Financial Stability Board General Secretary John Schindler