Swedish deputy wants macro-pru tools for non-banks

Work on developing new macro-prudential tools specifically aimed at countering risk in the non-banking sector should "start promptly", Sveriges Riksbank deputy governor Cecilia Skingsley said today (August 10).

Macro-prudential tools have mainly been developed to tackle "risk stemming from the traditional banking sector", Skingsley told a workshop held at the Hong Kong Monetary Authority. But the non-banking sector is growing rapidly "and so, most likely, is risk related to it", she said, according to a summary of her speech.

"I think it is most important… we start developing macro-prudential instruments that can counteract these risks," Skingsley argued. "Work on developing new tools should start promptly, as it will take years before such instruments can be in place at national levels," she told the workshop.

Consensus for bold macro-prudential policies often did not exist, Skingsley added. In those cases, policy-makers would have to "take a number of small steps" to avoid "a standstill in reforms".