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 Trade Tensions Rise: India Slaps Tariffs on Chinese and Vietnamese Steel READ MORE China Unleashes Bold Measures to Rescue Property Market Crisis READ MORE Powell Says Recent Inflation Numbers Haven’t ‘Really Changed the Overall Story’ READ MORE The Great American Housing Squeeze: Construction Costs Out of Reach for Most READ MORE The 21st Century Gold Rush: A Barometer of Global Unease READ MORE Add a Comment Cancel replyYour email address will not be published.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