TOKYO (Reuters) – The rising presence of non-bank monetary establishments (NBFI) warrants consideration, as some studies present they account for nearly half of monetary 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 just 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 may spill over to all the monetary system by way of monetary markets,” which require scrutiny, he stated.
