The National Bank of Belgium (NBB) and the Financial Services and Markets Authority (FSMA) published the fifth update of their joint report on asset management and non-bank financial intermediation (NBFI) in Belgium, concluding that the risks associated with these activities are currently limited. The update nonetheless points to vulnerabilities evidenced by events abroad and underlines the need for ongoing monitoring and policy follow-up as the European Savings and Investment Union develops. The report applies a risk-based approach to delineate NBFI, focusing on entities involved in credit intermediation that may generate bank-like financial stability risks through leverage or liquidity transformation. Using the Financial Stability Board (FSB) method, this subset is estimated at EUR 172 billion in assets at end-2023, around 29% of GDP, and small relative to other developed economies, while also highlighting links to NBFI activity outside Belgium. On asset management, Belgian investment funds accounted for EUR 215 billion in net assets at end-2023 and Belgian asset managers had roughly EUR 208 billion in assets under management. The analysis cites the 2021 failure of the Archegos family office and the 2022 UK gilt market tensions as examples of vulnerabilities related to liquidity, leverage and interconnectedness, and situates the Belgian assessment within ongoing international and European work by bodies including the FSB and the International Organization of Securities Commissions (IOSCO). The NBB and FSMA plan to continue participating in international and European initiatives to refine the view of NBFI risks and, where needed, strengthen the regulatory framework, and indicate that further regular updates will remain part of their monitoring approach.
National Bank of Belgium 2025-01-13
National Bank of Belgium and FSMA update report on asset management and non-bank financial intermediation and find risks currently limited
The National Bank of Belgium and the Financial Services and Markets Authority released their fifth joint report on asset management and non-bank financial intermediation, noting limited risks but highlighting vulnerabilities from international events. Non-bank financial intermediation assets are estimated at EUR 172 billion, about 29% of GDP. The report emphasizes ongoing monitoring as the European Savings and Investment Union evolves, with plans to engage in international efforts to refine risk assessments and regulatory frameworks.