Luigi Federico Signorini: Non-bank finance - opportunities and risks

Speech by Mr Luigi Federico Signorini, Deputy Governor of the Bank of Italy, at the Euromed Workshop "Non-Bank Finance and Financial Intermediation", Naples, 18 June 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Access to financial resources is essential for growth. The financial system channels resources through intermediaries and markets, allocating them within the economic system. The mix of banks, other intermediaries and market-based finance varies across countries and over time, depending on history, institutions, and stage of financial development, but certain common trends have emerged in the last decade.

Since the global financial crisis, the regulation of banks has been redesigned to address the vulnerabilities that led to accumulation of excessive risks. The reforms resulted from a reassessment of the role of banks in the post-crisis world, justified by the adverse systemic effects of their distress.