| Abstract: |
The study paper examines how non-bank financial institutions (in particular
money market funds, private equity firms, hedge funds, pension funds and
insurance undertakings, central counterparties, and UCITS and ETFs) have
performed over the last decade and during the financial crisis. The report
addresses the risks run by each of this type of institutions (credit,
counterparty, liquidity, redemption, and fire sales risk), and highlights also
the risks arising from a number of activities frequently undertaken by these
institutions, in particular securitisation (a.o. agency risk), securities
lending (a.o. counterparty risk) and repos (a.o. liquidity risk). The report
finally provides a selected overview of approaches for the measurement of
financial instability and financial distress. |