Non-banks' share of global assets rose in 2021, led by investment funds
Ties to banks and weak risk management raise concern for Basel Committee
Recent economic and financial market developments are exacerbating policy dilemmas
High debt, tighter conditions, geopolitical threats could reveal vulnerabilities, FSB warns
Combating liquidity stress is a key focus
The search for yield is driving the surge in non-bank lending
The large, opaque market has filled a void but created new risks that are hard to detect
The combination of leverage with rising real estate and other asset valuations is a vulnerability
As central bank balance sheets swelled, non-banks were overshadowed
Further reforms may be needed to address vulnerabilities revealed under extreme market stress