Al-Sayari warns of global debt and non-bank financial risks
Saudi Central Bank Governor Ayman Al-Sayari highlighted rising debt vulnerabilities, volatile capital flows, and the growing role of non-bank financial intermediaries at the G20 FMCBG Meeting on October 15, 2025. He emphasized the need for evolving safeguards in global financial architecture.
Historic debt burdens, moral imperative
Global debt has reached historic highs due to overlapping shocks, elevated interest rates, and tightening fiscal space.
For many low-income economies, rising financing costs strain budgets, crowd out social investment, and stifle growth.
Al-Sayari stressed that debt, when prudently managed, can finance infrastructure and education, but when it sustains inefficiency, it deepens inequality.
He noted that 3.4 billion people live in countries spending more on interest payments than on health or education, underscoring the moral dimension of debt policy.
Non-banks and data gaps reshape stability
Debt challenges are linked to the resilience of capital flows, which are vital for emerging markets.
The G20 plays a critical role in strengthening this resilience, requiring existing safeguards to evolve with global markets.
Non-bank financial intermediaries (NBFIs) are now central to global finance, but their growing importance introduces systemic risks.
Al-Sayari called for closing key data gaps, particularly high-frequency positions by instrument and currency, to build an integrated exposure map that captures comprehensive financial data.
Urgent call for G20 leadership
Al-Sayari's speech underscores a critical juncture for global finance, framing debt as a moral issue alongside its financial implications.
He effectively highlights the urgent need for updated regulatory frameworks for non-bank entities, which pose growing systemic risks.
His pragmatic call for G20 leadership in advancing transparency and strengthening surveillance is essential for ensuring global financial resilience in today's complex markets.