Macroprudential policies: What have we learnt?

Speech by Mr Claudio Borio, Head of the Monetary and Economic Department of the BIS, at the Bank of Italy Conference "Micro and Macroprudential Banking Supervision in the Euro Area", Università Cattolica del Sacro Cuore, Milan, 24 November 2015.


Post-crisis, macroprudential frameworks have rightly become an essential pillar of financial stability policies. This presentation addresses the implications of the financial cycle for their design, including objectives, instruments and governance as well as, more specifically, the strengths and limitations of macro-stress tests and network analysis. It highlights the areas where the scope for further work is greatest, including international co-ordination, the role of non-banks and sovereign risk. Addressing financial stability is a task that requires the active support of other policies, including monetary and  fiscal policy. Macroprudential frameworks must be part of the answer, but cannot be the whole answer.