At least over the medium term, the COVID-19 pandemic is likely to accelerate trends that call for extending the reach of macroprudential policy to a larger set of financial institutions and financial transactions. As a case in point, digitalisation provides opportunities for new players, and non-banks may take a larger role in financial intermediation.
To protect financial stability, macroprudential policy should be adjusted to also cover the systemic risks created by non-bank finance. Over time, digitalisation may also boost cross-border banking and the provision of cross-border financial services, thus increasing the contagion channels of systemic risks between financial systems. This increases the importance of cross-border cooperation between macroprudential authorities, which should be systemically enhanced.