BISness podcast - Regulating non-bank financial intermediaries

Former US Fed Chair Alan Greenspan referred to non-bank financial intermediaries (NBFIs) as the “spare tyre” for the financial system. This is because they can support the real economy when the banking system is under stress. NBFIs play a critical role in the financial system and include all financial intermediaries that are not banks. Within this universe are a subset of firms with various business models that provide credit to consumers and small businesses (“NBFI retail lenders”).
However, NBFI retail lenders are not subject to the same globally harmonised rules as banks. Therefore, a key question is whether a “bank like” prudential regulatory regime should apply to NBFIs, and if so, what it should look like.
In the latest episode of the BISness podcast, Financial Stability Institute Senior Advisors Johannes Ehrentraud and Raihan Zamil discuss these issues with Emma Claggett. Their recently published FSI Insights paper, co-authored with Elisabeth Noble (EBA) and Ségolène Mure (Bank of France), examines a range of regulatory regimes applicable to non-bank retail lenders and proposes a holistic policy approach to enhance their effectiveness: Safeguarding the financial system's spare tyre: regulating non-bank retail lenders in the digital era (bis.org)
Check out the podcast on Spotify, Apple Podcasts, your favourite podcast platform or the BIS website:www.bis.org/press/podcast.htm...