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 Yellen Critiques Market Overreaction to Inflation Data READ MORE Gold & Silver Mining Stocks Exposed: Long-Term Reality Revealed READ MORE Precious Metal Prices Climb on Powell's Rate Cut Signal READ MORE December Consumer Prices Rise Unexpectedly, Surpassing Forecasts READ MORE Gold's Record-Breaking Rally: Beyond Economic Indicators READ MORE Add a Comment Cancel replyYour email address will not be published.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