A final group, which I will refer to as other nonbanks and is often associated with substantial reliance on short-term wholesale funding, consists of broker-dealers, money market mutual funds (MMFs), finance companies, issuers of asset-backed securities, and mortgage real estate investment trusts, which together provide 14 percent of credit.
The financial system as a whole must remain sound and stable in order to enjoy a high level of public confidence. Until recently, the improvement in various transformation functions of the financial system was the focal point of reform initiatives in many developing countries.