February 2025
On 22 May 2024 the European Commission (EC) launched a targeted public consultation on the adequacy of macroprudential policies for Non-Bank Financial Intermediation (NBFI), as a response to the different events in recent years related to financial stability.
ESMA responded to the consultation in November 2024 highlighting the need to implement a macroprudential regulation to address the main vulnerabilities and risks resulting from the NBFI. Moreover, ESMA stressed the need for greater supervisory coordination at a European Union (EU) level to obtain a more effective framework, improve the quality of information, and foster cooperation at the European and international levels.
ESMA also believes it is beneficial to assess the different nature and activities of the entities engaged with the NBFI, that is, regulated entities subject to specific legislation, market infrastructures, unregulated market participants (e.g., family offices), and a wide range of activities that contribute to financial intermediation, such as repo finance.