ECB releases paper on strengthening the macroprudential lens in the regulation of non-bank financial intermediation

NBFI has grown since the global financial crisis, bringing benefits for EU capital markets, investment and growth, but also vulnerabilities such as leverage, liquidity mismatch and bank links.  The Eurosystem says current regulation lacks sufficient ex ante macroprudential tools and proposes targeted measures, data strategy, surveillance and policy development, focusing mainly on asset management.