Macroprudential policy should be reshaped, not dismantled

dc.title: Macroprudential policy should be reshaped, not dismantled dc.contributor.author: Kärkkäinen, Samu; Topi, Jukka; Kauko, Karlo dc.description.abstract: In Finland, macroprudential policy has been used to protect against the systemic risks associated with having a large and concentrated banking sector and high household indebtedness. Even so, the requirements of Finland’s macroprudential policy are moderate by comparison with the other Nordic countries, for instance. There are nevertheless grounds for reshaping macroprudential policy, but it is important not to jeopardise the resilience of the financial system. In particular, the basis on which macroprudential policy decisions are made across the EU should be harmonised and the impacts of macroprudential requirements and other regulatory measures should be assessed on a comprehensive, holistic basis. dc.description: Find the accessible version on bofbulletin.fi.