ALFI responds to the EC consultation on assessing the adequacy of macroprudential policies for non-bank financial intermediation

On 22 May 2024, the European Commission launched a consultation on assessing the adequacy of macroprudential policies for non-bank financial intermediation.

The EC is consulting to identify vulnerabilities of the NBFIs sector, including the fund industry, in order to assess the needs to adjust existing macroprudential frameworks. The pre-identified vulnerabilities, relating to

1. Liquidity mismatch;
2. Excessive leverage;
3. Interconnectedness with banks; and
4. Supervisory coordination;

are directly impacting the fund and asset management industry. A section of the consultation is also dedicated to the MMFs.

Due to the transversal nature of the topic, workshops across working groups have been organised to prepare the draft response to this consultation.

View the ALFI response.