As things stand, we think it is unlikely that non-bank financial intermediaries (NBFIs) would trigger a major financial crisis comparable to the Global Financial Crisis. The biggest risks relate to potential liquidity mismatches in open-ended funds, which are a very small share of the global financial system. If risks do materialise, they are most likely to be a problem in major advanced economies with large NBFI sectors like the US and euro-zone, and would first be evident in indicators of market liquidity, such as sharp rises in bid-ask spreads of high-yield bonds.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services