Featured Product

    ECB Publishes a Working Paper on Macro-Prudential Regulation in EU

    January 15, 2018

    ECB published a working paper that analyzes macro-prudential regulation in the EU between 1995 and 2014. The paper introduces a new comprehensive data set on policies of a macro-prudential nature in the banking sectors of the 28 member states of the EU. It describes the design and structure of the new data set and presents analysis of the use of macro-prudential policy measures in the EU during the period in consideration.

    The working paper reviews existing data collections of macro-prudential policy measures. It also describes the coverage of the new Macro prudential Policies Evaluation Database (MaPPED) data set and provides a clear definition of what is understood as a measure of a macro-prudential nature. It then offers information on the data collection process and presents basic descriptive statistics on the number of policy actions covered as well as several key attributes included in the data set. Next, the paper provides a first descriptive analysis of the use of macro-prudential measures in the EU between 1995 and 2014, along with a first descriptive assessment of the effectiveness of these policy measures in controlling credit growth. The paper concludes by proposing directions for future research using the new data. The annex to this paper offers additional descriptive statistics as well as a detailed codebook for users of the data set.

    MaPPED offers a detailed overview of the life-cycle of policy instruments, which are either genuinely macro-prudential or are essentially micro-prudential, but likely to have a significant impact on the whole banking system. The paper uncovers common trends and notable country-specific differences in the implementation of policies with a macro-prudential character and helps to put the new post-Basel III approach of regulating financial systems into historical perspective. The paper notes that there has been a remarkable variation in the use of policies of a macro-prudential nature, both across EU countries and over time. Moreover, the analysis provides tentative evidence of an impact of capital buffers, lending restrictions, and caps on maturity mismatches on credit to the non-financial private sector in the EU as well as of the relative ineffectiveness of sectoral risk-weights in controlling credit growth.

     

    Related Link: Working Paper

    Keywords: Europe, EU, Banking, Macro-Prudential Policy, Financial Stability, Basel III, ECB

    Featured Experts
    Related Articles
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

    ESMA updated the reporting manual on the European Single Electronic Format (ESEF).

    July 09, 2020 WebPage Regulatory News
    News

    EBA Calls on Resolution Authorities to Consider Impact of COVID Crisis

    EBA published a statement on resolution planning in light of the COVID-19 pandemic.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    July 08, 2020 WebPage Regulatory News
    News

    ECB Guideline on Materiality Threshold for Credit Obligations Past Due

    ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.

    July 08, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-14 With Respect to PPP and CARES Act

    FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.

    July 08, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5458