banking sector busted because of data breach

The significant lack of data makes a concrete estimation of the risk challenging. However, the level of vulnerability from leveraging has proved to be difficult to estimate both for authorities and market participants. Low interest rates in recent years and asset price volatility incentivised investors to use leverage to boost returns. High financial leverage in times of lower interest rates

Financial Auxiliaries (FAs), such as insurance brokers and captive financial institutions.ġ.

Other Financial Institutions (OFIs), such as Investment Funds and Money Market Funds.All the entities which have bank-like activities, also called the “narrow measure”, where Money Market Funds and Fixed Income Funds make up the largest part (for other economic functions, see annex).Īnother way of looking at NBFIs is simply by dividing them into the main components such as:.

NBFIs not engaging in credit intermediation nor bank-like activities (about 75% of the sector).The Financial Stability Board (FSB) monitors NBFI activity and divides the sector in two:

Most NBFIs take in cash, just as banks do, and deploy it in various securities and derivatives. We are classifying them all as non-banks that take in cash and use it to generate a return. The term NBFI is used to describe a large variety of institutions. NBFIs have many faces, including ones that can look like a bank

Banking sector busted because of data breach