Deepening Ties: Exploring the Growing Bank Linkages to Non-Bank Financial Institutions
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Bank linkages to NBFIs have nonetheless been increasing over time which can be explained by the increasing size of the NBFI sector. With IMF data, we can see the increase in both claims and liabilities from banks to NBFIs.
Banks' claims to NBFIs reached 22% of total cross border claims as liabilities are around 20% of total cross border liabilities
Bank liabilities towards NBFIs (as a percentage of total cross-border liabilities) have increased by five percentage points since 2015. The same pattern is visible for claims to NBFIs which went from 17% to 22% in the seven-year period.