All financial market companies should play by the same rules – this is one of the main points in NFU’s reply to the EU Commission Green Paper on Shadow banking.

The last few years the EU have put great effort into regulating the banking sector. At the same time, many players in the financial markets are not banks, and do not have to abide to the same rules. Now, the EU has turned its focus towards the part of the financial sector that is called shadow banking. The EU Commission has released a Green Paper and invited stakeholders to reply.

NFU gives input to all Green Papers and consultations that concern the employees of the financial sectors. In our consultation reply on Shadow Banking, we state that:

– All financial market companies should be subject to the same duties and controls.
– It is important that the regulatory landscape can be properly and continuously updated and revised in order to ensure that no entities can escape control by staying ahead of the regulators.
– The Commission should investigate how and if current rules for bank liquidity could be extended to apply to all non-regulated bank entities.
– The Commission should thoroughly analyse how insurance and reinsurance undertakings fit into the list of shadow banking entities, since they are already regulated.

Read the full NFU consultation reply here

Read more about Shadow Banking here