On 30 April 2019, the European Systemic Risk Board (ESRB) published a report setting out its review of macro-prudential policy in the EU in 2018. The review provides an overview of the measures of macro-prudential interest that were adopted in the EU in 2018.

Key messages in the review include:

  • as there are indications that the financial cycle is turning in some countries, more Member States have tightened the countercyclical capital buffer;
  • financial stability risks in the real estate sector continue to be an important area of macro-prudential policy in 2018;
  • structural risks are addressed by the SyRB in 2018, and there are now 16 EEA Member States with a SyRB in place;
  • Member States have increasingly used measures under Article 458 of the Capital Requirements Regulation to mitigate systemic risk. In particular this tool has been used to mitigate different types of systemic risk arising from different sources: increasing vulnerabilities in the real estate sector; a potential liquidity shock; and high indebtedness of the non-financial corporation sector; and
  • ESRB members took measures to mitigate the risks associated with Brexit.