On 22 November, the Central Bank of Ireland published its response (PDF 699.99KB)to the European Commission’s targeted consultation assessing the adequacy of macroprudential policies for Non-Bank Financial Intermediation (NBFI). The consultation aims to identify the vulnerabilities and risks of NBFIs and map the existing macroprudential framework for NBFIs.
The development of macroprudential policy for the non-bank financial sector remains a key priority for the Central Bank of Ireland and our response to the European Commission consultation builds on the approach previously outlined in our Discussion Paper (PDF 1.15MB)published in 2023. Specifically, the Central Bank of Ireland’s response focuses on a number of key areas relevant for the development of macroprudential policy for NBFI and, in particular, investment funds. These include: (i) implementing internationally-agreed reforms; (ii) enhancing the macroprudential toolkit; (iii) ensuring effective governance arrangements; (iv) introducing system-wide stress testing for the EU; (v) enhancing data sharing; and (vi) monitoring – and, where needed, adjusting – the regulatory perimeter.
The Central Bank of Ireland was also heavily involved in developing the single Eurosystem response (PDF 714.35KB). The Eurosystem response is closely aligned with the Central Bank of Ireland’s response and focuses in particular on a number of questions relevant for central banks.