The Rise of NBFIs: Banks Without the Banks

By now you’ve probably realised that the financial system is a bit like an elaborate game of Jenga – complex, interconnected, and occasionally prone to wobbles. You’ve got your banks, your investment funds, your pensions schemes, and a whole host of other players moving money around in ways that keep markets ticking. But lurking just outside traditional banking system are Non-Bank Financial Institutions (NBFIs) – the mysterious entities that walk, talk, and quack like banks but, crucially, aren’t banks.