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

Jinse Finance reported that the Financial Stability Board (FSB) stated on Tuesday that last year, the share of the non-bank financial sector in global assets rose to 51%, totaling $256.8 trillion, with a growth rate twice that of the traditional banking industry. Non-bank financial intermediaries, often referred to as "shadow banks," include money market funds, hedge funds, private credit institutions, pension funds, and insurance companies. The rapid expansion of this sector has increasingly become a focus for regulators, who are concerned about its lack of transparency and the potential risks that could threaten the broader financial markets. The Financial Stability Board, which is responsible for coordinating financial regulatory rules among G20 economies, pointed out in its annual assessment report on the industry that the share of the non-bank financial sector in global assets has reached the second highest level in history, similar to the level before the pandemic.