The Financial Stability Board (FSB) published three reports under its programme to strengthen resilience in nonbank financial intermediation (NBFI): final policy recommendations on financial stability risks from NBFI leverage, its 2025 NBFI progress report, and a workplan to address key data challenges in nonbank sectors. The final leverage recommendations, delivered to the G20, set out an integrated approach under which authorities should identify where NBFI leverage creates financial stability risks and ensure appropriate measures are in place to address the risks identified. The recommendations are directed at FSB member authorities and focus on markets, entities and activities where leverage poses financial stability risks, while allowing flexibility to select, design and calibrate measures or combinations of measures in light of jurisdiction-specific circumstances and potential adverse effects; authorities are expected to share policy responses through channels including FSB supervisory discussions. The progress report concludes that the original policy elements of the FSB’s NBFI work programme launched after the March 2020 market turmoil are largely complete, with the work now shifting toward monitoring vulnerabilities, addressing data challenges, sharing policy insights and evaluating reform implementation and impact. To tackle data gaps that hinder assessment of nonbank vulnerabilities, the FSB established a Nonbank Data Task Force chaired by FSB Chair Andrew Bailey and launched a test case on leveraged trading strategies in sovereign bond markets, citing both their financial stability importance and cross-border data challenges. A report on the test case is due by mid-2026, after which the FSB will decide whether further work is needed in other areas; in parallel, it will conduct an analytical deep dive on vulnerabilities in private credit, including identifying data challenges in that area.

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