(Bloomberg) -- European Central Bank Vice President Luis de Guindos said steps must be taken to avoid future dangers stemming from the growing role of non-banks in the financial sector.

While acknowledging that their emergence has promoted financial integration and supported economic growth, Guindos warned Tuesday in a speech in Frankfurt that it also entails increased risks.

“Interconnectedness between the banking and the non-bank financial sector remains high, increasing the scope for contagion,” he said. “Given these growing risks, the policy action undertaken to date is becoming ever more insufficient. Indeed, there seems to be a general inertia in the adoption of policy recommendations on non-banks. That has to change.”

Proposals listed by Guindos include:

• Reducing the risks of mismatch between funds’ asset liquidity and their redemption policies
• Reforming European Union regulation of money-market funds
• Addressing risks from non-bank leverage
• Enhancing margining practices and liquidity preparedness to meet margin calls

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