ECB’s de Guindos Calls for Macroprudential Approach to Non-Banks

16 November 2023

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Vice President Luis de Guindos on Thursday said that financial stability could benefit from a macroprudential approach to the non-bank sector.  

In a panel discussion at the annual conference of the European Systemic Risk Board (ESRB), de Guindos said that ‘strengthening the policy framework for non-banks from a macroprudential perspective could further enhance financial stability.’

Just as macroprudential policies had contributed to the banking sector’s resilience after the global financial crisis, non-banks could benefit from them as well, he said, noting the latter's ‘increasing role in financing the real economy.’

This could be achieved with a macroprudential approach aimed at enhancing the non-bank sector’s strength ‘across the right range of entities and activities’, he said.

‘Such an approach would build on existing policy frameworks, for instance in the investment fund or insurance sector, and develop a comprehensive set of policy measures that address risks from a systemic perspective’, he said.