The Drive for Data in Non-Bank Financial Intermediation (NBFI)

The Financial Conduct Authority (FCA) has been increasing its focus on non-bank financial intermediation (NBFI) in recent years. NBFI refers to the provision of financial services by institutions that are not banks. This includes a wide range of entities, such as investment funds, insurance companies, and asset managers.

The FCA's interest in NBFI is due to the growing importance of these firms in the financial system. NBFIs have been growing rapidly in recent years, and they now account for a significant share of financial intermediation. This growth has been driven by a number of factors, including low interest rates, technological innovation, and regulatory changes.

The FCA's focus on NBFI is also due to the risks that these firms pose to the financial system. NBFIs are often less regulated than banks, and they may not have the same level of resilience. This makes them more vulnerable to shocks, and they could pose a risk to financial stability if they were to fail.

The FCA is taking a number of steps to address the risks posed by NBFIs. One of the most important steps is to improve the data that is available on these firms. The FCA is working to collect more data on NBFIs, and it is also working to improve the quality of the data that is available. This will help the FCA to better understand the risks posed by NBFIs and to take steps to mitigate those risks.

The FCA is also working to strengthen the regulation of NBFIs. The FCA is considering a number of new regulations for NBFIs, and it is also working to implement existing regulations more effectively. This will help to ensure that NBFIs are subject to the same level of regulation as banks, and it will help to reduce the risks posed by these firms.

The drive for data in NBFI is an important step in the FCA's efforts to protect the financial system. By improving the data that is available on NBFIs, the FCA will be better able to understand the risks posed by these firms and to take steps to mitigate those risks. This will help to ensure that the financial system remains stable and resilient.

The drive for data in NBFI is an important step in the FCA's efforts to protect the financial system. By improving the data that is available on NBFIs, the FCA will be better able to understand the risks posed by these firms and to take steps to mitigate those risks. This will help to ensure that the financial system remains stable and resilient.

https://www.fca.org.uk/news/speeches/drive-data-non-bank-financial-intermediation-nbfi