EU macroprudential policy lays emphasis on residential mortgage loans and the banking sector’s structural risks

Abstract

The European Union has for about two years witnessed the conduct of macroprudential policy mainly based on EU legislation and calibrated for national circumstances. In most cases, the measures have been of a tightening nature and aimed at addressing the banking sector’s structural risks and lending for house purchase. Regulatory reforms and macroprudential measures have improved the risk resilience of the bank-centred EU financial system. Work on also targeting macroprudential policy at stability risks building up beyond the banking system is at an initial stage.