When we look at financial stability concerns in non-banks, we are looking less at the risk-bearing capacity of the individual institution’s balance sheet and more at the potential for contagion and shock amplification through the system and amplification of the broader financial cycle. So the key risks that we look at relate to liquidity, leverage, procyclicality and interconnectedness.
Essential features of the Eurosystem’s monetary policy  •  Central Bank independence Crucial to this novel framework are the concepts of central bank independence and the assignment of a clear mandate to the ECB and the Eurosystem. The movement towards central bank independence is not limited to the euro area.