The European Banking Authority (EBA) published a report on Wednesday 4 May on non-bank lending in response to a call for evidence launched by the European Commission in February 2021. Its proposals aim to address the risks arising from lending by non-bank entities in the areas of supervision, consumer protection, anti-money laundering and countering the terrorism financing, macro- and micro-prudential risks.
Although innovative financial services can bring benefits to consumers and increase competition in the market, non-bank lending remains largely unharmonised in the EU, which can create challenges for all stakeholders, including regulators.
The report highlights the importance of adapting the consumer protection framework to the arrival of new players on the market. It also insists on the strengthening of provisions for authorisation and admission to activities and on clarifying the identification of the prudential perimeter. It also calls for enhancing the monitoring and reporting frameworks to address macro-prudential risks.
To read the EBA report: https://aeur.eu/f/1ig (Original version in French by Anne Damiani)