Remarks by Under Secretary for Domestic Finance Nellie Liang at the Central Bank of Ireland Conference on Macroprudential Policy for Investment Funds

As Prepared for DeliveryThank you for the invitation and opportunity to speak to you today. Both in the U.S. and globally, non-bank financial intermediaries have increased in significance and this trend has been going on for much longer than a decade. In particular, investment funds have grown significantly. According to data from the FSB, collective investment vehicles with features that make them susceptible to runs have nearly tripled in the U.S. since 2006 and stood at over $13 trillion by the end of 2022.1 During the same period, banking assets almost doubled and stood at close to $30 trillion by the end of 2022.It is widely accepted that banks, especially large banks, can be a source of systemic risk. There are financial vulnerabilities in how they offer liquid, stable-value funds to depositors and provide longer-term credit to households and businesses.