They say they want to highlight the risk of the growing
nonbank sector, as most discussion around preventing another housing crash has focused on the supervision of banks and other deposit - takers.
As the search for yield intensifies, vulnerabilities are shifting to
the nonbank sector and market risks are rising.
Not exact matches
Many of the big banks closed or curtailed their subprime lending operations early in the decade, but their funding of
nonbanks means they still have a role, albeit an indirect one, in the
sector.
M1 specifically computes figures based on «the total quantity of currency in circulation (notes and coins) plus demand deposits denominated in the national currency, held by
nonbank financial institutions, state and local governments, nonfinancial public enterprises, and the private
sector of the economy.»
FinCEN noted that this requirement will close a regulatory gap, as well as mitigate some of the money laundering risks and vulnerabilities that have been exploited in the
nonbank residential mortgage
sector.