Project information
Sentiment and Non-Banks: Behavioral Drivers of Global Financial Flows

The primary objective of the planned research is to investigate the role of sentiment in shaping the behavior of non-banks, with particular emphasis on the non-bank financial intermediation (NBFI) sector. NBFIs have become a major part of the global financial system, contributing to diversification and innovation, yet they remain less regulated than banks and therefore more vulnerable to shocks. Their close ties to the banking sector mean that disruptions can easily spill over and affect financial stability. Understanding how sentiment influences this sector is particularly timely, as the NBFI system has grown rapidly in size and importance but still lacks comprehensive academic and policy analysis from a behavioral perspective.