Economic news
BOJ calls for vigilance to presence of non-bank financial institutions
2024.11.14 00:24
TOKYO (Reuters) – The growing presence of non-bank financial institutions (NBFI) warrants attention, as some reports show they account for almost half of financial intermediations globally, Bank of Japan Deputy Governor Shinichi Uchida said on Thursday.
“Financial and capital markets are often affected by NBFIs’ strategies and activities, as we observed very recently,” Uchida said in a speech delivered to an annual meeting of the International Association 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 said.
