BEIJING: China will pay closer attention to the influence of non-bank financial institutions on financial stability, and the impact of local policy interventions on broader global markets, according to a central bank working paper published on Tuesday. In recent years non-bank institutions such as trust and investment companies, or fund and asset management firms have expanded their activity – much of it a less regulated form of lending – even as policymakers have tried to rein in leverage in the Chinese economy.“Though banks still dominate China’s financial system, non-bank financial institutions have considerable influence as well,” the paper published on the People’s Bank of China website said. “We believe that sufficient attention should be given to international spill-over effects of intervention policies, and the impact of non-bank financial institutions to financial stability,” it said. The paper analysed the impact of changes in China’s stock market and financial sector on developed countries – the United States, Britain, Germany and Japan. “China’s financial sector exerts considerable influence on global financial markets, especially on the Japanese financial sector,” it said.