TOKYO (Reuters) – The rising presence of non-financial institution financial institutions (NBFI) warrants consideration, as some reports display they account for practically half of of enterprise intermediations globally, Financial institution of Japan Deputy Governor Shinichi Uchida stated on Thursday.

“Financial and capital markets are normally struggling from NBFIs’ recommendations and actions, as we noticed very nowadays,” Uchida stated in a speech dropped at an annual meeting of the Worldwide Association of Deposit Insurers.

“Because the connection between NBFIs and the banking sector deepens, deterioration within the non-financial institution sector could seemingly per chance also spill over to the complete financial map by device of financial markets,” which require scrutiny, he stated.