Nonfinancial sector Our financial stability monitoring extends to the nonfinancial sector, including households and businesses. Research has identified excessive growth in credit and leverage in the private nonfinancial sector as potential indicators of systemic risk.9 Highly leveraged or financially  8  See Financial Stability Oversight Council, 2013 Annual Report, in note 1.
9  See, for example, Mathias Drehmann, Claudio Borio, and Kostas Tsatsaronis (2011), “Anchoring Countercyclical Capital Buffers: The Role of Credit Aggregates,” International Journal of Central Banking,  6  BIS central bankers’ speeches  fragile households and businesses are less able to withstand adverse changes in income or wealth, including those brought about by deteriorating conditions in financial and credit markets.