Non-Bank Lending In the European Union

(AIMA) – The successful growth of non-bank lending in the EU means policymakers are now re-evaluating their approach to this market and considering whether the current regulatory framework remains appropriate.

The Alternative Credit Council (ACC) has published a white paper in partnership with Allen & Overy to provide insights from industry and an overview of the European regulatory landscape to support them in this exercise.

This white paper seeks to be an honest and transparent engagement on behalf of non-bank lenders about the future of non-bank lending in Europe, which builds on the successful dialogue between our industry and policymakers.

We believe that the focus of this dialogue should now be on the following key themes:

• Removing barriers to finance flowing from the capital markets to European businesses.
• Facilitating knowledge sharing between stakeholders on non-bank lending activities in Europe.
• Ensuring that non-bank lending benefits borrowers and enhances the financing of innovation throughout Europe.

Policymakers, supervisors and industry acting together will be the most effective way of catalysing the growth of non-bank lending and improving access to finance across the continent. It is our intention that this paper will mark the first stage of greater collaboration.

We believe that policymakers’ approach towards the non-bank lending sector should be based on the following premises:

• Lending from the capital markets supports financial stability.
• This lending is not banking.
• The role played by existing regulation should be recognized.
• Existing barriers to non-bank lending in individual EU Member States should be addressed.

The paper can be accessed on AIMA´s website, here: Non-Bank Lending In the European Union