FSB Secretary General John Schindler recently discussed the issue of leverage in nonbank financial intermediation during an interview with Jack Farley on the Monetary Matters podcast. Schindler explained the complexities involved and highlighted regulatory efforts to address these challenges, referencing recommendations released by the Financial Stability Board (FSB) in July 2025.
"The FSB recommendations issued in July 2025 are designed to help regulators better monitor and manage risks associated with leverage in nonbank financial intermediation," said Schindler during the interview.
Nonbank financial intermediaries play a growing role in global finance, often operating outside traditional banking regulations. Regulators have been concerned about potential risks that excessive leverage within this sector could pose to financial stability. The FSB’s recent guidance aims to strengthen oversight and risk management practices among these entities.
Schindler emphasized ongoing international cooperation among regulators as they implement these new standards. "We are working closely with authorities worldwide to ensure consistent application of our recommendations," he stated.
The FSB continues to monitor developments in nonbank financial intermediation and is committed to updating its approach as market conditions evolve.