Commission launches consultation on macroprudential policies for Non-Bank Financial Intermediation

Tomorrow, the European Commission will host a technical workshop to launch a targeted consultation on macroprudential policies for non-bank financial intermediation (NBFI). The objective is to gather further insight into the markets and business models of NBFI, and the interconnectedness among them and with banks.

The workshop will bring together EU and global experts, policymakers, leading EU and third countries regulators, and representatives from the industry. It will contribute to the international debate on macroprudential policies for NBFI, with a focus on the financial stability in the EU and how to ensure effective monitoring and risk management for investments funds. Commissioner for Financial Stability, Financial Services and Capital Markets Union, Mairead McGuinness, will deliver a keynote speech.

Commissioner McGuinness said: “Non-bank financial intermediation plays an important role in capital markets and can support the EU’s sustainability and digital agenda, where private investment will be key. A diverse financial sector is also important for maintaining financial stability, diversifying funding opportunities and reducing the over reliance on traditional bank lending. Tomorrow, the Commission will launch a targeted consultation to inform its macroprudential policies for NBFI to ensure that they continue to serve the needs of our citizens and businesses.”

NBFI comprises very diverse financial sectors including regulated entities (e.g. asset management companies and investment funds, non-bank investment firms, pension funds, insurance companies) and unregulated entities (e.g. family offices and supply chain finance companies). In the third quarter of 2023, non-bank financial intermediaries (NBFIs) accounted for roughly €42.9 trillion (41% of EU total financial assets), while banks’ assets accounted for roughly EUR 38 trillion (36% of EU’s total financial assets).

The full programme and webstreaming are available online. The targeted consultation will be available here. More information on the Commission’s work on NBFI is available here.