Safeguarding the financial system's spare tyre: regulating non-bank retail lenders in the digital era

Non-bank financial intermediaries (NBFI) encompass numerous firms with distinct business models that provide various financial services. This includes NBFI retail lenders, such as finance companies, mortgage companies, fintechs and big techs that lend to households and small and medium-sized enterprises. However, regulations for these lenders are inconsistent across different countries, despite them posing similar risks as banks. This report calls for a more comprehensive approach to overseeing these non-bank lenders. The proposal recommends a more unified way to oversee these lenders, with consistent rules, better group supervision, and strong oversight bodies. This comprehensive approach would strengthen financial stability while allowing NBFIs to keep lending to consumers and businesses.