Getting ready for the new European macro-prudential instruments

In the wake of the 2008 financial crisis, policymakers have come to realize that achieving price stability and supervising individual financial institutions are not sufficient to guarantee financial stability. They have come to appreciate that macro-prudential policy is an essential tool to reduce ‘systemic risk’ and ensure the stability of the financial system. In Europe, at the recommendation of the de Larosière report, the European Systemic Risk Board (ESRB) was established in 2011 with a mandate to oversee risk in the EU financial system as a whole. Time has now come to start operationalising EU macro-prudential policy based on two recent steps: the 20 June ESRB recommendation objectives and instruments of macro-prudential policy; and the 27 June Official Journal publication of the new EU legislation on prudential requirements for banks (CRR/CRD IV).

The purpose of the seminar was to discuss how the new national macro-prudential authorities and the ECB (as part of the Single Supervisory Mechanism) would make use of the new instruments, some of which would already enter into force on 1 January 2014. It also discussed how the ESRB would operate to ensure coordination among the many institutional players.

Event materials

• Event summary download
• John Berrigan, Macro-prudential policy in the EU: Challenges in objectives, instruments and organisation, presentation
• Mathias Dewatripont, Getting ready for the new European macro-prudential instruments, presentation
• Aerdt Houben, Getting ready for the new European macro-prudential instruments - An Economic Perspective, presentation
• Francesco Mazzaferro, Recommendation on intermediate objectives and instruments of macro-prudential policy, presentation

Speakers

• John Berrigan, Director for Financial Stability, European Commission, DG ECFIN
• Mathias Dewatripont, Executive Director, National Bank of Belgium
• Aerdt Houben, Director for Financial Stability, De Nederlandsche Bank
• Francesco Mazzaferro, Head of Secretariat, European Systemic Risk Board (ESRB)
• Chair - André Sapir, Senior Fellow, Bruegel, Professor, ULB and Chair, Advisory Scientific Committee, ESRB

Practical details

Venue: Bruegel, Rue de la Charité 33, 1210 Brussels
Time: Monday 15 July 2013, 11:00 - 13:00 (A light lunch will be served after the event)
Contact: Matilda Sevón, Events Coordinator - matilda.sevon[at]bruegel.org