/ 2017 / 6 ) published 14. february 2018. 12 see ecb macroprudential bulletin, “ macroprudential liquidity tools for investment funds – a preliminary discussion ”. the article states that redemption duration restrictions could be differentiated based on the fund type, or a limited number of fund “ profiles ” that represent a combination of key fund characteristics, including the asset and liability side of the fund. 6 / 7 bis central bankers'speeches 13 see also ecb contribution to the european commission ’ s consultation on capital markets union mid - term review 2017. 7 / 7 bis central bankers'speeches

##ing redemptions in a stress scenario. going beyond the esrb recommendation, i would argue in favour of complementing the powers that are currently envisaged for authorities with ex ante tools targeting liquidity risks at system level. existing liquidity management tools may mitigate liquidity risk ex post, but they might not suffice to prevent the build - up of vulnerabilities in exuberant times ex ante. the toolkit available to macroprudential authorities should therefore include additional ex ante requirements such as minimum liquidity buffers and redemption notice periods. 12 mandatory liquidity buffers require funds to hold sufficient high - quality liquid assets for the fund to be able to meet redemptions and margin calls under many foreseeable scenarios. the introduction of minimum notice periods would help align a fund ’ s liability structure with the liquidity - and riskprofile on the asset side. overall, such tools could be used to raise the sector ’ s resilience to potential investor runs or spikes in margin calls. setting these requirements would greatly limit the sector ’ s ability to build - up liquidity risk in exuberant times. finally, given the cross - border nature of the investment fund sector, we need to strengthen the european perspective in the supervision of investment funds while also ensuring a globally consistent approach to monitoring. arguably, the investment fund industry in the eu is highly concentrated in a few jurisdictions, but – due to the diverse asset holdings and investor locations – the impact of adverse developments in this sector may be felt across the eu. hence, i call for further investigation of the case for bringing investment fund supervision and the potential activation of macroprudential tools to the european level. 13 in a related debate, the fsb announced recently that it will no longer use the term “ shadow banking ” in its future communications to avoid the pejorative connotations. hedge funds and other asset managers will instead fall under a broader group of non - bank financial intermediaries. 5 / 7 bis central bankers'speeches we very much welcome the change in terminology, as it supports a closer focus on emerging vulnerabilities in the asset management sector, regardless of whether these are considered to be bank - like or not. concluding remarks we have come a long way since the financial crisis. we have implemented a range of regulatory reforms that have addressed many issues that the crisis brought to light both in the bank and non - bank financial sectors. nevertheless, the ever evolving