Speakers
Objectives
The term ‘non-bank financial intermediation’ (NBFI) has been evolving together with the financial sector According to the Financial Stability Board, the NBFI sector accounted for 49.1% of total global financial assets in 2023.Today, with its own intrinsic plurality of different actors, NBFI may become an interesting laboratory of how new models of finance can increasingly interact with each other. In fact, in line with a global trend to the provision of financial services, also in Europe borders between the sectors composing the financial system are becoming more porous. This raises the point of how regulation should keep pace, taking a more system-wide approach. It is key to ensure that, in an integrated financial system, financial risk does not migrate to those sectors that are less resilient, as this would lead to the propagation of systemic risk. This makes it important to take a broad, system-wide approach to leverage, liquidity and concentration risks, which requires combining macro- and micro-prudential tools. Against this backdrop, the evolving nature of the financial system requires strengthening the interaction between micro- and macroprudential lens in the regulation of NBFI to achieve a system-wide approach.This session will first discuss what should the main features of a system-wide approach to the NBFI sector. Speakers will then be invited to express their views on the stakes and challenges involved in implementing a system-wide approach to the regulation of this sector at the European and international levels.
Points of discussion
- To what extent is a system-wide approach to the Non-Bank Financial Intermediation sectors (NBFI) necessary for the risk of migration of systemic risk across the different sectors of the financial system? What should be its main features?
- What are the stakes, and the challenges involved in the implementation of a system-wide approach to the regulation of this sector at the European and international levels?