Pablo Hernández de Cos: Making macroprudential policy fit for the next decade

Keynote speech by Mr Pablo Hernández de Cos, Governor of the Bank of Spain and Chair of the Advisory Technical Committee of the European Systemic Risk Board, at the 6th DNB-Riksbank Bundesbank Macroprudential Conference, Santpoort-Amsterdam, 20 June 2022. 

The views expressed in this speech are those of the speaker and not the view of the BIS.

Thank you very much to the organisers for inviting me to this conference, Today, I will be addressing you in my capacity as Chair of the Advisory Technical Committee of the European Systemic Risk Board (ESRB).

The ESRB brings together all the institutions which contribute to financial stability in the EU. And crucially for today's event the ESRB's Advisory Scientific Committee also brings an academic perspective to the table. This broad membership is an important point of strength for the ESRB as it combines several dimensions: national and European, sectoral and system-wide, supervisory and academic. It reflects the ESRB's broad, system-wide mandate. It allows us to base both the assessment of systemic risks and the development of policy proposals on a uniquely wide range of views and a broad set of information across all parts of the EU financial system. The ESRB has been very active in recent years, by issuing country- and sector-specific warnings and recommendations, which are followed up and translated into action.

Today I would like to focus on what needs to be done to ensure that the EU macroprudential framework is fit for the next decade in view of the European Commission's ongoing revision of the Capital Requirements Directive and Regulation. Reflecting the ESRB's broad mandate, I will start with the banking sector, then I will move beyond banks to the wider financial sector. Finally, I will touch on the overarching need to address the hybrid risks to financial stability stemming from cyber threats and climate change.