Targeted consultation assessing the adequacy of macroprudential policies for non-bank financial intermediation (NBFI)

Targeted stakeholders in this consultation include primarily EU institutions and bodies, national authorities, including National Competent Authorities (NCAs) that supervise NBFIs and markets, central banks and the NBFI industry. 

The objective of this consultation is to seek public authorities’ and stakeholders’ view on the adequacy of the macroprudential framework for NBFI with the intent not to revisit recent legislative agreements. The consultation aims to identify the vulnerabilities and risks of NBFIs and map the existing macroprudential framework for NBFIs. Second, it seeks to gather feedback on the current challenges to macroprudential supervision and discuss areas for further improvement.

Based on the Commission’s recent report on the macroprudential review for banks and NBFIs, this consultation paper identifies the following key vulnerabilities stemming from NBFIs

1. unmitigated liquidity mismatches
2. the build-up of excessive leverage
3. interconnectedness among NBFI sectors and between NBFI and banks

Moreover, a lack of consistency and coordination among macroprudential frameworks across the EU can exacerbate the negative impact of such vulnerabilities, leading to unaddressed systemic risks. Commission services will use the information gathered in this consultation to inform the policy planning of the upcoming 2024-2029 College of Commissioners.