Macroprudential policies, targeted at particular markets or countries, can play a key role in addressing such imbalances. Indeed, the ESRB last year identified medium-term vulnerabilities in some countries’ residential real estate sectors – precisely the type of situation that macroprudential policies are designed to address.
It published country-specific warnings to eight Member States in November 2016, in accordance with its mandate to identify and flag significant systemic risks.6 1/5  BIS central bankers' speeches  But beyond increasing the resilience of the banking sector, there is also a need to address the remaining legacies of the crisis.