This Handbook aims to assist macroprudential authorities in the European Union (EU) to operationalise instruments set out in the prudential rules for the EU banking sector. While some of the rules - commonly referred to as the Capital Requirements Directive (CRD IV) and the Capital Requirements...

The level of interest rates is of major importance to financial market participants, including banks. In a context where interest rates remain low for a long period of time (in one scenario over a ten-year horizon), the impact on the EU banking sector could be quite significant. In particular,...

The leverage ratio is an important part of the post-crisis regulatory framework. It was initially proposed by the Basel Committee on Banking Supervision (BCBS) in December 2009 and is expected to be introduced as a Pillar 1 standard by 1 January 2018. The ESRB considers the leverage ratio to be...

We present a methodology based on quarterly sectoral accounts to build a map of the euro area financial system. The map can be used to visualise existing cross-sectoral interconnections and exposures, to analyse how the main bilateral positions have evolved over time, and to understand how past...

This report analyses misconduct risk in the banking sector from a macroprudential perspective. Misconduct risk refers to risks attached to the way in which a firm and its staff conduct themselves. As such, it includes how customers and investors are treated, mis-selling of financial products,...

This Handbook aims to assist macro-prudential authorities in the European Union (EU) to operationalise instruments set out in the new prudential rules for the EU banking sector. While the rules - commonly referred to as the Capital Requirements Directive (CRD) and the Capital Requirements...

The ESRB Handbook on Operationalising Macroprudential Policy in the Banking Sector (ESRB (2014a)) provides detailed guidance to macroprudential authorities in the European Union (EU) on how to design and implement macroprudential policy for the banking sector. It is not binding on...

We set out a stylised framework for the policies enacted to address the risks posed by systemically important institutions (SIIs) and to counter the too-big-to-fail (TBTF) problem, examining conceptually how far supervisory and resolution policies are complementary or substitutable. The...