The Beacon | Banking On Nonbanks
New NY Fed research reveals that liquidity risk hasn’t disappeared, just gone dark.
The conventional narrative about financial intermediation is fundamentally wrong. For decades, analysts have watched bank-led finance decline while nonbank financial institutions (NBFIs) surge, interpreting this as a structural shift toward a nonbank-centric system. But a new paper from the Federal Reserve Bank of New York reveals that this story obscur…
