The European Systemic Risk Board (ESRB) has published, Macroprudential policy beyond banking: an ESRB strategy paper. The paper sets out a policy strategy to address risks to financial stability wherever they arise in the financial system. It discusses a number of themes including:

• risks to financial stability can originate in the banking sector and in other parts of the financial system;
• addressing risks beyond banking requires macroprudential instruments that apply to both lenders and borrowers, targeting entities and activities;
• the move to a more market-based financial system underscores the need for a broader set of macroprudential instruments;
• loans made by non-banks and debt securities issued by corporates can also contribute to credit booms and busts;
• a broad view of financial stability that takes account of risks to the real economy has to go beyond banking;
• the macroprudential policy framework in the EU is under construction and lacks instruments to address risks beyond the banking sector;
• the lack of a comprehensive macroprudential policy framework can cause activities and risks to migrate across sectors and borders; and
• the greater role for non-banks in financing the real economy underscores the need to broaden the macroprudential framework.

View ESRB publishes its strategy paper on macroprudential policy beyond banking, 19 July 2016