Rising Non-Bank Reliance Could Amplify Financial Shocks for Big Banks Non-bank financial institutions are increasingly posing risks to America’s big banks, as highlighted by economists in a New York Fed blog post. During market stress, non-banks’ demand for liquidity from banks can amplify financial shocks, potentially necessitating mass intervention by authorities. With non-banks operating under less stringent regulations, the interconnectedness between banks and non-banks has intensified, with risk correlation rising from 65% pre-2008 to over 80% now. The commercial real estate sector, with significant upcoming mortgage maturities amid rising vacancies and high interest rates, exemplifies this growing risk. « Previous Article Next Article » Share This Article Choose Your Platform: Facebook Twitter Google Plus Linkedin Related Posts Morgan Stanley Predicts Continued Dominance of U.S. Dollar as Global Reserve Currency READ MORE Mortgage Rates Hit Lowest Level in Over a Year READ MORE April CPI Report Shows Inflation Easing, But Consumer Prices Up 3.4% Year-Over-Year READ MORE The Asset that Soared 100X Past Gold READ MORE Gold Edges Higher as Markets Price in 93% Chance of September Fed Rate Cut READ MORE Add a Comment Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Save my name, email, and website in this browser for the next time I comment. Comment