On 28 April 2020, the European Central Bank (ECB) published a report, Framework to assess crossborder spillover effects of macroprudential policies. The report presents an analytical framework for assessing crossborder spillover effects of planned or enacted macroprudential measures. The description of the framework presented in the report is accompanied by an ECB occasional paper, which provides a more detailed study of the existing literature on cross-border spillovers, a survey of current national approaches and the conceptual underpinnings of the framework in the report.

A ‘best practice’ framework for assessing cross-border spillover effects of macroprudential measures has been established. To ensure that such considerations are based on consistent analytical approaches across the EU, the Task Force on Cross-border Spillover Effects of Macroprudential Measures of the Financial Stability Committee of the European System of Central Banks has devised a best practice framework for the analysis and assessment of cross-border spillover effects from the activation of national macroprudential measures. The framework is meant to serve as a starting point for national designated authorities and national competent authorities when assessing the need for reciprocity in the context of activations of macroprudential measures. The proposed framework is intended to help inform deliberations on cross-border spillover effects and reciprocity agreements at the EU level under the umbrella of the European Systemic Risk Board.