Eurosystem High Level Task Force on NBFI final report published in Europe; data hub at ESMA enables cross-border data sharing
Eurosystem High Level Task Force on NBFI final report published in Europe; data hub at ESMA enables cross-border data sharing Strengthening the Macroprudential Framework for Non-bank Financial Intermediation | Deutsche Bundesbank Strengthening the Macroprudential Framework for Non-bank Financial Intermediation Since the global financial crisis, non-bank financial intermediaries(NBFIs)—including funds, insurers, and pension funds—have grown significantly. In Germany, theNBFIsector now holds around 40 % of the financial assets within the financial system, with its share having increased by 15 percentage points since 2009. This development supports a diversified financing of the real economy and promotes cross-border investment. At the same time, recent episodes of market stress have demonstrated thatNBFIactors can also pose systemic risks to the entire financial system, particularly in light of increasing cross-border interconnectedness and links with the banking sector. Examples include the “dash for cash” during theCOVID-19 market turmoil in March 2020 and the turbulence surroundingLDIstrategies ofUKpension funds during theUKgilt crisis in 2022. ...