On 22 May 2024, the European Commission (Commission) announced it is launching a consultation on macroprudential policies for Non-Bank Financial Intermediation (NFBI).

NBFI comprises very diverse financial sectors including regulated entities and unregulated entities. In the third quarter of 2023, non-bank financial intermediaries accounted for roughly EUR42.9 trillion (41% of EU total financial assets), while banks’ assets accounted for roughly EUR 38 trillion (36% of EU’s total financial assets).

The Consultation Paper identifies vulnerabilities and risks of NBFIs and maps the existing macroprudential framework for NBFIs. It then seeks to gather feedback on current challenges to macroprudential supervision and discuss areas for further improvements. The deadline for comments on the targeted consultation is 22 November 2024.

The Commission is also hosting a technical workshop to launch the consultation, which 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 investment funds.

The Commissioner for Financial Stability, Financial Services and Capital Markets Union, Mairead McGuinness, will deliver a keynote speech: “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”.