Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
RegulationsFebruary 1

Non-banks can be ‘too big to fail’, at least in the US

Updated guidance in the US will allow easier designation of non-bank financial institutions as systemically important. Will other jurisdictions follow?
Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
Non-banks can be ‘too big to fail’, at least in the USJanet Yellen, US Treasury secretary, speaks during a meeting of the Financial Stability Oversight Council. Image: Al Drago/Bloomberg

As non-bank financial institutions keep growing, now accounting for almost half of global financial assets, regulators are still grappling with the best way to tame the risks they pose to financial stability.

Last November, the US Financial Stability Oversight Council issued updated guidance that will allow the council to more comfortably designate systemically important financial institutions, mirroring what currently happens with banks.

To continue reading, join our community and benefit from

  • In-depth coverage across key markets
  • Comments from financial leaders and policymakers worldwide
  • Regional/country bank rankings and awards
Activate your free trial
Barbara Pianese is the Latin America editor at The Banker. She joined from Mergermarket, where she spent four years covering mergers and acquisitions across Europe with a focus on the consumer sector. She holds an MA in International and Diplomatic Affairs from the University of Bologna having studied in Brazil and France as well.
Read more articles from this author