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

_IMF Staff Country Reports, July 25, 2025_

## Source details

**Canonical URL:** [Euro Area: Publication of Financial Sector Assessment Program Documentation-Technical Note on Systemic Risk Analysis-NBFI](https://www.imf.org/en/publications/cr/issues/2025/07/25/euro-area-publication-of-financial-sector-assessment-program-documentation-technical-note-568948)

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## Bibliographic details
- Published: July 25, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229019859.002

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### Overview
- 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.
- Spillovers to and from the insurance sector to the fund sector were quantified based on detailed EA insurers’ assets holdings and derivative positions.
- Publication date: July 25, 2025.
- Series: IMF Staff Country Reports; Country Report No. 2025/211.
- Pages: 55.

### Key Analytical Components
- Assessment of counterparty credit risk related to Central Counterparties (CCPs).
- Quantification of system-wide spillovers from NBFI liquidity distress, focusing on the investment funds sector.
- Quantification of spillovers to and from the insurance sector to the fund sector using detailed EA insurers’ asset holdings and derivative positions.
- Subject tags present in the document: Asset and liability management, Collateral, Financial institutions, Financial sector policy and analysis, Liquidity, Liquidity stress testing, Mutual funds, Stress testing.

### Primary Findings and Focus Areas
- Counterparty credit risk linked to CCPs is a central area of analysis for NBFI systemic risk in the euro area.
- Investment funds are a primary channel analyzed for potential system-wide spillovers arising from NBFI liquidity distress.
- Interactions between insurers and funds were quantified using insurers’ asset holdings and derivative positions to capture bidirectional spillovers between the insurance sector and the fund sector.

### Keywords and Analytical Tools Referenced
- Keywords included: 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.

_International Monetary Fund. Monetary and Capital Markets Department "Euro Area: Publication of Financial Sector Assessment Program Documentation-Technical Note on Systemic Risk Analysis-NBFI", IMF Staff Country Reports 2025, 211 (2025), July 25, 2025._

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## Content in this bundle

- **1eurea2025008**
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_Source: https://www.imf.org/en/publications/cr/issues/2025/07/25/euro-area-publication-of-financial-sector-assessment-program-documentation-technical-note-568948_