Rules insufficient to ensure stability of NBFI sector, says EU official

Risk management regulations in the banking sector are insufficient to ensure the stability of the non-bank financial sector, the head of the secretariat of the European Systemic Risk Board said at an event yesterday.

Francesco Mazzaferro’s comments came as the European Commission launched a consultation on macroprudential policy for non-banks aimed at managing risks in the shadow banking sector following a series of stressful events that hit the mainstream financial sector.