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 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...

This paper sets out a policy strategy to address risks to financial stability wherever they arise in the financial system. While macroprudential policy for the banking sector is already operational, the policy strategy, data and instruments to address risks beyond the banking sector are...

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...

The recent banking turmoil was a stark reminder of the fragility associated with banks' funding structures, especially when they rely on an insufficiently diverse uninsured deposit base. Concerns about unrealised losses, triggered by the rapid shift in monetary policy, played a clear role in the...

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...

The stability of a banking system ultimately depends on the strength and credibility of the fiscal backstop. While large countries can still afford to resolve large global banks on their own, small and medium-sized countries face a policy choice. This paper investigates the impact of resolution...