However, as the sector continues to expand and increase its role in lending to the real economy, as its interlinkages with the wider financial sector deepen, and as the footprint of large institutions grows, non-banks will only gain in systemic importance.
From a theoretical point of view, some observers argued that key determinants of long-term interest rates – such as the global riskless real rate of interest and the real risk premium – had indeed been influenced by the globalised environment12. In these circumstances, the ability of short-term interest rate changes to influence long-term rates could be more problematic than would otherwise be the case.