NBFIs see outlook stabilise as funding conditions normalise

Chinese NBFIs are expected to benefit from improved risk profiles and policy alignment.

Non-bank financial institutions (NBFIs) are expected to see better funding but contend with the effects of slowing global growth in 2026, according to Fitch Ratings.

APAC developed market NBFIs will see a normalising economic environment alongside robust and steady funding and liquidity conditions, the ratings agency said, having revised their outlook to ‘neutral’ from ‘deteriorating.’

Pockets of pressure remain for US and Taiwanese consumer finance companies, and European rolling stock leasing companies, Fitch said in the “Global Non-Bank Financial Institutions 2026 Outlook Compendium” report published on 15 December 2025.

Chinese and Latin American NBFIs have ‘neutral’ outlooks. Chinese NBFIs, in particular, will benefit from improved risk profiles and policy alignment to underpin systemic stability, Fitch said.

North American and European securities firms’ operating performance are supported by lower policy rates, the pro-business stance of the current US administration, and reduced regulatory scrutiny, it said.