The Teller Window
A view into the work of the New York Fed
Return to The Teller Window Home Page

2 posts on "Nonbank Financial Institutions (NBFIs)"
February 13, 2025

The Role of Nonbank Financial Institutions in Monetary Policy

This is the second in an ongoing series on nonbank financial institutions. Read the first article on the basics of NBFIs.

The Federal Reserve has historically relied on commercial banks and select broker-dealers to implement and transmit monetary policy. In recent years, nonbank financial institutions (NBFIs) have taken on increasingly important roles. As discussed in a previous article, NBFIs are financial companies that perform a variety of financial services but do not have a bank license. Examples of NBFIs include investment funds, pension funds, insurers, government-sponsored entities, and broker-dealers. In this article, we discuss some of the ways that NBFIs contribute to the implementation and transmission of monetary policy in the United States.

November 21, 2024

The Basics of Nonbank Financial Institutions

This is the first in an ongoing series on nonbank financial institutions.

There is a vast set of U.S. financial institutions that sit outside the banking system. These companies, which are called “nonbank financial institutions” (NBFIs), are collectively much larger than U.S. banks, as measured by assets, and perform a broad array of services for the U.S economy. In this article, we discuss the universe of NBFIs and their importance for the Federal Reserve’s monetary policy, supervision, and financial stability objectives.

About

The Teller Window is a publication featuring expert knowledge and insight from the New York Fed, including thoughts and perspectives from senior leaders. It offers a deep look at issues that matter to the Federal Reserve’s Second District and the nation.

Articles on the Teller Window focus on the people and programs that help the New York Fed support the U.S. economy. They are written for a wide audience with the aim of illustrating what we are doing and why it matters. Stories include editorials, interviews, explainers, and reports on events and trends in our communities and region. The Teller Window is edited by the Communications and Outreach Group on behalf of the New York Fed. Separately, for analysis from New York Fed economists working at the intersection of research and policy, please see Liberty Street Economics.

The New York Fed began publishing on the Teller Window in November 2022. Articles with dates earlier than November 2022 were originally published by the New York Fed on Medium.

Step up to the Teller Window to learn more about the New York Fed’s work and views.