This indicator represents the proportion of domestic claims held by nonbank financial institutions relative to a country's gross domestic product, highlighting the
financial system's reliance on these entities outside the traditional banking sector. It is derived by analyzing the values of financial claims, adjusted for inflation through a detailed deflation process that incorporates both end-of-period and average annual consumer price index (CPI) figures. The calculation provides a nuanced view of how nonbank financial institutions contribute to the economy, reflecting their role in extending credit and investment to the real nonfinancial sector. By leveraging data sourced from the IMF's International Financial Statistics, this metric serves as a critical tool for assessing financial stability and market dynamics, offering insights into the evolving landscape of financial intermediation.
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