Improvements to margining practices should focus on increasing transparency, reducing excessive margin procyclicality and ensuring that non-banks are better prepared for margin calls.8 And it is important to understand and tackle the risks associated with leverage in the non-bank financial sector. To monitor and address vulnerabilities arising from the use of leverage, globally consistent leverage metrics are needed. Conclusion Let me conclude.
The non-bank sector’s role in financing the euro area economy has increased significantly over time. In terms of strengthening European capital markets, this is a welcome development.