Furthermore, a time-varying dimension for both the leverage ratio (LR) and the net stable funding ratio (NSFR) – that will become part of the toolkit as soon as introduced – could be considered. Finally, it is necessary to simplify the current cumbersome notification and approval procedures in order to allow macroprudential authorities to act in a flexible and timely manner.
Another issue relates to the need to expand our macroprudential toolkit beyond the banking sector to also cover risks among non-banks and the financial markets as a whole. In recent years, financial activity and the financing of the economy has been increasingly shifting to financial institutions beyond banks.