On 25 April 2018, the European Systemic Risk Board (ERSB) published A Review of Macroprudential Policy in the EU in 2017. Key messages in the review include:

  • as there are indications that the financial cycle is turning in some countries, more Member States tightened the counter cyclical capital buffer;
  • the real estate sector continues to be an important target of macroprudential policy; and
  • the importance of cross-border banking in the EU poses challenges to the national scope of macroprudential measures. One such challenge comes from the growing importance of branches compared to subsidiaries in the wake of the financial crisis, a trend that may accelerate following the announced restructuring of some large European banking groups. The ESRB has contributing to addressing these challenges, in particular through the development of its reciprocity framework, but further initiatives may be needed.