ICMA publishes a position paper on NBFI Macroprudential framework for Bond Market Activity
15 May 2025 The universe of so-called non-bank financial intermediaries (NBFIs) is inherently diverse, nonetheless all of these undertake some bank-like activity, and all play a role in financing economies. Furthermore, all of these entities are subject to varying degrees of regulation and transparency which may differ across the jurisdictions in which they operate. It may be difficult therefore to assess fully the risks that some of these entities could pose to wider financial stability, particularly where they operate on a cross-border basis.
ICMA believes that the answer to this is to create a more even, but proportionate, playing field with respect to non-bank regulatory reporting, as well a cross-jurisdictional framework for the sharing of regulatory data and the coordination of market surveillance.
Download the ICMA position paper
ICMA does not believe that applying a one-size-fits-all macroprudential framework to non-banks, or additional layers of prudential regulation to banks, is an appropriate or proportionate solution to what is in effect an issue with market oversight.
ICMA would add that rigorous rules, at least in the EU context, already apply to asset management firms, OEFs and MMFs, which make further measures unjustified. Meanwhile, more can be done to help promote market liquidity and resilience, address risks related to procyclicality, and remove barriers to central clearing.
