TOKYO (Reuters) – The rising presence of non-bank monetary establishments (NBFI) warrants consideration, as some stories present they account for nearly half of monetary intermediations globally, Financial institution of Japan Deputy Governor Shinichi Uchida stated on Thursday.
“Financial and capital markets are often affected by NBFIs’ strategies and activities, as we observed very recently,” Uchida stated in a speech delivered to an annual assembly of the Worldwide Affiliation of Deposit Insurers.
“As the relationship between NBFIs and the banking sector deepens, deterioration in the non-bank sector could spill over to the entire financial system via financial markets,” which require scrutiny, he stated.
