It is also important to establish the legal basis for macroprudential tools that can be used to address risks to financial stability that emerge from outside the banking sector, as well as to include a macroprudential perspective in the regulation of non-bank financial institutions across the EU.
Greater financial risk sharing, diversification and heightened competition between banks and nonbanks, and across borders, bring material economic benefits. Indeed, capital markets can be an important complement to banks when it comes to providing finance to the economy.