Euro Area: Publication of Financial Sector Assessment Program Documentation-Technical Note on Systemic Risk Analysis-NBFI

July 25, 2025

Summary

This note discusses the assessment of systemic risks within Non-Bank Financial Institutions (NBFIs) as part of the Financial Sector Assessment Program (FSAP) for the euro area (EA). It outlines the assessment of counterparty credit risk related to Central Counterparties (CCPs) and the potential system-wide spillovers from NBFI liquidity distress with a focus on the investment funds sector. In addition, spillovers to and from the insurance sector to the fund sector were quantified based on detailed EA insurers’ assets holdings and derivative positions.

Subject: Asset and liability management, Collateral, Financial institutions, Financial sector policy and analysis, Liquidity, Liquidity stress testing, Mutual funds, Stress testing

Keywords: alternative investment, Collateral, Global, Liquidity, liquidity management tool, Liquidity stress testing, management directive, market scenario, markets authority, Mutual funds, securities financing transactions regulation, Stress testing, system-wide spillover

Pages:
55
Volume:
2025
DOI:
https://doi.org/10.5089/9798229019859.002
Issue:
211
Series:
Country Report No. 2025/211
Stock No:
1EUREA2025008
ISBN:
9798229019859
ISSN:
1934-7685

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