Credit risk of non-bank non-insurance financial services subsector in advanced economies (AD) and emerging markets (EM) have walked divergent trend since beginning of 2023, according to Criat credit cycle index (CCCI) shown in this week’s chart.
Non-bank financial intermediaries (NBFIs) operating in emerging markets have, in general, seen their credit risk profile improve compared to their peers operating in advanced economies in the G20.
For advanced economies, NBFIs domiciled in Europe have fared worse compared to their US counterparts on the back of rising geopolitical risk and hindered access to financing.
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