The review also needs to promote a clear allocation of tools between the macro- and micro-prudential supervisors to ensure a timely activation of the instruments.
This implies that the macroprudential use of Pillar 2 should be abandoned and the procedures for Article 458 CRR should be strongly streamlined for an effective use of macroprudential policy.8 The capital- and borrower-based macroprudential instruments I just mentioned are targeting risks among the banking sector and the real economy. But given the structure of our financial system, they are not sufficient.