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...

This paper describes the new European Systemic Risk Board (ESRB) database that contains information about the macroprudential measures applied by the authorities in the Member States of the European Union and in two countries of the European Economic Area. The database currently covers mainly...

IFRS 9 is the new accounting standard for the classification and measurement of financial instruments, issued in response to the mandate received from the G20 in the light of the performance of accounting standards during the global financial crisis. The European Union endorsed IFRS 9 in...

This report considers the use of margins and haircuts to meet macroprudential objectives. It (i) explains the need for macroprudential policies to mitigate systemic risk from excessive leverage and procyclicality in collateral requirements; (ii) sets out how margins and haircuts could, in...

Financial markets have been adapting to a low interest rate environment and undergoing major structural changes over the past decade. The changes have profoundly affected financial market functioning and structures, creating new vulnerabilities and systemic risks. This report considers the...

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,...

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...

The report investigates how structural features of, and cyclical developments in, residential real estate (RRE) markets in the EU may affect financial stability and how related risks can be addressed. The report is structured in four main sections covering: (i) an analysis of the structural...