TOKYO, April 21 (Reuters) - Japan's financial system maintains overall stability, but it's necessary to monitor the impact of developments in the Middle East and the rising activities of foreign non-banks, the central bank said on Thursday.

"Stress affecting non-banks in terms of credit or liquidity could more easily spill over to banking sectors across multiple jurisdictions," the Bank of Japan said in its report on the financial system.

(Reporting by Makiko Yamazaki; Editing by Tom Hogue)