Another angle to address risks in the non-bank sector is to shed further light on and monitor certain activities that give rise to stability concerns, notably in the derivatives, repo and securities financing markets. Risks in these markets may also be created by entities domiciled in jurisdictions outside the euro area, which may otherwise escape the monitoring perimeter.
Macroprudential tools for non-bank entities The importance of market-based finance and in particular of asset managers and the new vulnerabilities they may create, lead me to strongly share the view recently voiced by a number of prominent supervisors that we need to push ahead to develop a toolkit of policy measures.