Call for Papers on the Future of Nonbank Financial Institutions in Asia

<p>Shadow banking, or non-bank financial institutions (NBFIs), has significantly grown with the rise of money market funds, insurance firms, pension funds, microfinance, securitization, etc. According to the recent Global Monitoring Report on Non-Bank Financial Intermediation, the NBFI sector has nearly equivalent assets to banks, with a total financial asset holding of USD 217.9 trillion, as of 2023 (Financial Stability Board, 2024). While the expansion of NBFIs has contributed to financial deepening, it has also increased interconnectedness and risks in the financial systems (Adrian &amp; Ashcraft, 2012; Acharya et al., 2013). With time, financial markets rely on the proliferation of credit, not just within formal, regulated banking channels but also from shadow banks or NBFIs.</p>
<p>Until 2011, several challenges were associated with the nonbank sector. There was no formal definition of shadow banks or NBFIs; the industry was largely unregulated; instruments and services were unsecured; institutions had no liquidity access and were not backed by the central banks. The lack of regulation and adequate oversight in the shadow banking sector poses substantial risks to financial stability, particularly in emerging markets of Asia, where financial sectors are still evolving. While efforts have been made to regulate nonbank activities through product-specific regulation, such as insurance and pension funds, many shadow banking activities continue to operate in the grey areas. The financial system in Asia is particularly vulnerable to the growing shift toward NBFIs, as the sector remains in a nascent stage of development across much of the region. This underscores the importance of a coordinated strategy and in-depth discussion to enhance monitoring of this less-monitored sector.</p>
<p>ADBI will organize a conference on the Future of Nonbank Financial Institutions in Asia, emphasizing growth, regulation, and systemic risk from nonbank institutions (microfinance, pension, insurance, money market mutual funds (MMFs), other financial institutions (OFIs) to financial stability. The conference aims to facilitate discussion to develop a deeper understanding of NBFIs and their activities in Asia. The conference will facilitate collaborative discussions among leading policymakers, regulators from NBFIs, researchers, and think tanks, focusing on analyzing the structure, growth, and risks associated with the expanding non-bank financial sector in Asia. It will also explore regulatory frameworks and the role of fintech-enabled NBFIs in enhancing digital financial access and fostering multi-stakeholder dialogue to shape the future of NBFIs in the region.</p>
<p>ADBI invites researchers to submit full papers focusing on, but not limited to, the following topics:</p>
<ul>
<li>Structure, growth, and evolution of NBFIs (microfinance, pension, insurance, MMFs, OFIs) in Asia.</li>
<li>Asset composition among banks and nonbanks (microfinance, pension, insurance, MMFs, OFIs).</li>
<li>Current regulatory environment governing and compliance for NBFIs in the region, and best practices to regulate and supervise nonbanks globally.</li>
<li>NBFIs' credit activities, peer-to-peer lending, and financing behavior.</li>
<li>NBFIs and risks: reputational, liquidity, credit, operational, and systemic risks to financial stability.</li>
<li>Disintermediation and the role of NBFIs in financial inclusion and climate finance.</li>
<li>Fintech-enabled NBFIs, digital innovation and micro-insurance, and financial access to MSMEs and other niche markets.</li>
</ul>
<p>The objectives of the conference are to:</p>
<ul>
<li>Examine the structure, growth, and evolution of NBFIs (microfinance, pension, insurance, MMFs) in Asia, as well as the opportunities presented for growth and potential bottlenecks.</li>
<li>Explore the ongoing asset transformation and channel of potential systemic risks emanating from the rapid expansion of nonbanks.</li>
<li>Discuss the current regulatory environment governing NBFIs in the region and compare best practices to regulate and supervise nonbanks globally.</li>
<li>Investigate whether fintech-enabled NBFIs enhance financial access to MSMEs and other niche markets.</li>
<li>Engage in multi-stakeholder dialogue and forward-looking discussions and co-create the knowledge base involving regulators from banks, nonbanks, think tanks, and academics to envision potential scenarios and trajectories for the future of NBFIs in Asia.</li>
</ul>