European Commission Consults on Adequacy of Macroprudential Policies for Non-Bank Financial Intermediation

The European Commission has launched a consultation to gather further insight into the markets and business models of non-bank financial intermediation, and the interconnectedness among them and with banks. It also aims to identify gaps in the macroprudential framework and other factors that may contribute to the build-up of systemic risks in NBFI.

The Commission hosted a technical workshop on May 22, 2024 to kickstart the initiative. The focus of the technical workshop was on: (i) the impact of NBFI on financial stability in the EU and how to ensure effective monitoring and risk management for investment funds; (ii) the role of macroprudential authorities in monitoring interconnectedness, deploying macroprudential tools, and ensuring cross-border coordination within the EU; (iii) international cooperation in the regulation and supervision of NBFI; and (iv) international experience and evidence regarding macroprudential policies for NBFI.

The consultation aims at identifying the vulnerabilities and risks of NBFIs and mapping the existing macroprudential framework, and seeks to gather feedback on current challenges to macroprudential supervision and discuss areas for further improvement.
The closing date for responses is November 22, 2024. The Commission will use the information gathered in this consultation to inform the policy planning of the upcoming 2024–2029 College of Commissioners.

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