In other words, these institutions have acted as a spare tire for the banking sector. 4 However, complexity also poses challenges. While the financial crisis arguably started in the nonbank sector, it quickly spread to the banking sector because of interconnections that were hard for regulators to detect and greatly underappreciated by investors and risk managers in the private sector.
In the context of an open capital account and a flexible exchange rate regime, a cautious approach of monetary policy in Mexico has allowed to address a  3  Mian, A., Straub, L., & Sufi, A. (2019). Indebted Demand. Unpublished. 7  series of shocks that led to an environment of uncertainty and higher risk premia.