Banks have been the key drivers behind the growth of financial assets, according to the Financial Stability Board (FSB).
The international organisation promoting international financial stability has revealed a new report showing that the total global financial assets grew by 1.4% to $378.9trn in 2018.
Banks drew most of the growth, with the assets of insurance corporations and pension funds remaining largely unchanged.
Interestingly, those of all financial institutions that are not central banks, banks, insurance corporations, pension funds, public financial institutions or financial auxiliaries declined marginally as a result of stock market declines in late 2018 and, to a lesser extent, outflows from some of these entities.
The non-bank financial intermediation measure grew by 1.7%, to $50.9trn in 2018, significantly slower than the growth seen between 2012 and 2017 when the average annual growth rate stood at 8.5%. It now represents 13.6% of total global financial assets.
“Non-banks play an increasingly important role in the global financial system,” said Klaas Knot, chair of the FSB Standing Committee on Assessment of Vulnerabilities. “The FSB’s monitoring report provides a significant resource for authorities to assess trends and risks from NBFI. Such information is essential for a forward-looking, system-wide oversight framework.”
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