Central banks need to develop better tools for providing emergency liquidity to non-bank financial intermediaries (NBFIs), the International Monetary Fund says.

The fund’s recommendations include granting systemic non-banks access to lender-of-last-resort (LOLR) facilities, an option central banks have historically tended to avoid.

But vulnerabilities among NBFIs – including asset managers, insurers and pension funds – have risen in the past decade. At the same time, non-banks are now “vital