The value of assets held by insurers, private credit providers, hedge funds and other non-bank financial groups grew at more than double the rate of those in the banking sector last year as concerns grow about the opacity and potential risks posed by the sector.
The assets of these non-bank groups rose in value by 9.4 per cent to $256.8tn in 2024, meaning they accounted for more than half of global financial assets for the first time since the Covid-19 pandemic, according to research published by the world’s financial stability watchdog on Tuesday.
By contrast, the value of heavily regulated banks’ assets rose 4.7 per cent to just over $191tn in 2024, the Financial Stability Board said.