In this sense, the use of these policy tools should take account of both macro-financial and contagion aspects, and most likely will require a continuous interaction between the ESRB and the relevant supervisory and regulatory authorities. 2  BIS Review 166/2009  Progress has been made in laying out a framework for systemic risk surveillance and assessment.
Similarly, loan-to-income (LTI) ceilings like the ones which are already available in six euro-area countries, including Ireland, Estonia and Cyprus, would also be effective tools for preventing systemic real estate crises if the worst came to the worst. Incidentally, that’s a view which is also held by the International Monetary Fund.