NBFI oversight ‘no longer adequate’, say BdF economists
Researchers call for stronger supervision of non-bank sector ‘before risks actually materialise’
Economists from the Banque de France (BdF) have called for closer supervision of non-banks.
Their research, published on April 27, says that based on a recent system-wide stress test involving banks and non-bank financial intermediaries (NBFIs) in France, current oversight of the latter “no longer appears adequate for reducing the tendency of certain types of NBFI – or certain practices – to amplify shocks”.
The study cites inadequate liquidity risk management, excessive leverage and strong
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