"11  V. Increasing Importance of Non-Banks in the International Financial System Up until now, I have focused on global financial intermediation by banks, but after the global financial crisis, we cannot ignore the increasing importance of non-banks in the international financial system.12 For the next few minutes, let me focus on this development and the effects on and implications for Japan through the looking glass of the FX swap market.
Changes in the Market Structure of Foreign Exchange Swaps As described earlier, major Japanese banks, which can tap a relatively wide range of funding markets, are currently refraining from heavily using the FX swap market for their U.S. dollar funding (Chart 7).