FSB reports continued growth in nonbank financial intermediation in 2024 to $256.8 trillion

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Ref: 25/2025

• The nonbank financial intermediation (NBFI) sector grew at double the pace of the banking sector in 2024.
• Investment funds, trust companies, hedge funds, and money market funds all recorded significant growth.
• Report highlights severe limitations in the availability of regulatory data for private credit.

The Financial Stability Board (FSB) today published its annual Global Monitoring Report on Nonbank Financial Intermediation.

The report describes broad trends in nonbank financial intermediation in 2024 across 29 jurisdictions that account for over 90% of global GDP. The main findings from this year's monitoring exercise include:

• In 2024, the NBFI sector grew 9.4%, double the pace of the banking sector (4.7%), increasing its share of total global financial assets to 51% ($256.8 trillion), similar to pre-pandemic levels. This growth reflected buoyant risk appetite amidst increasing asset prices and lower policy rates.
• All NBFI subsectors grew in 2024. Other financial intermediaries - which includes money market funds, hedge funds, other investment funds, trust companies, and structured finance vehicles - was the fastest growing sub-sector, growing by 11% over the year, to $169.4 trillion. Pension fund and insurance corporation assets grew 7% and 6%, respectively.
• The narrow measure of the NBFI sector - which consists of entities that authorities have assessed as being involved in credit intermediation activities that may pose bank-like financial stability risks - increased 12% to $76.3 trillion. Most vulnerability metrics for entities classified into the narrow measure - measuring credit intermediation, maturity transformation, liquidity transformation, and leverage - remained broadly stable. Fixed income and mixed funds showed high degrees of liquidity transformation, while finance companies, broker-dealers, and structured finance vehicles displayed high levels of leverage.

The Global Monitoring Report also highlights severe limitations in the availability of data for private credit in statistical and regulatory reports. The assessment of private assets' potential impact on financial stability will be an important part of the overall FSB's surveillance work in the year ahead. For this report, using proxies and market intelligence, jurisdictions identified a diverse set of non-bank entities engaging in private finance, including private credit funds, but also trust companies, finance companies, structured finance vehicles, insurance corporations, and pension funds.

Notes to editors

The FSB created a system-wide monitoring framework to track developments in NBFI in response to a G20 Leaders' request at the Seoul Summit in 2010. The objective of the monitoring exercise is to identify the build-up of vulnerabilities in NBFI and initiate corrective actions where necessary.

Complementing this monitoring, the FSB has been coordinating the development of policies, together with its member standard-setting bodies and international organisations, to mitigate potential vulnerabilities associated with NBFI. Progress under the FSB work programme to enhance resilience in NBFI is detailed in the FSB's July 2025 report.

The FSB coordinates at the international level the work of national financial authorities and international standard-setting bodies and develops and promotes the implementation of effective regulatory, supervisory, and other financial sector policies in the interest of financial stability. It brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts. The FSB also conducts outreach with approximately 70 other jurisdictions through its six Regional Consultative Groups.

The FSB is chaired by Andrew Bailey, Governor of the Bank of England. The FSB Secretariat is located in Basel, Switzerland and hosted by the Bank for International Settlements.