TOKYO (Reuters) – The rising presence of non-bank monetary establishments (NBFI) warrants consideration, as some studies present they account for nearly half of economic intermediations globally, Financial institution of Japan Deputy Governor Shinichi Uchida stated on Thursday.
“Monetary and capital markets are sometimes affected by NBFIs’ methods and actions, as we noticed very lately,” Uchida stated in a speech delivered to an annual assembly of the Worldwide Affiliation of Deposit Insurers.
“As the connection between NBFIs and the banking sector deepens, deterioration within the non-bank sector might spill over to the complete monetary system through monetary markets,” which require scrutiny, he stated.