To this aim, it is important that Member States are able to tighten temporarily, i.e. while those specific risks remain, the quantitative ratios and limits of some prudential policy requirements while leaving the definitions intact. The ECB favours the inclusion in that list of instruments: the capital ratio, the large exposures, the liquidity ratios and the leverage ratio, as expressed in our published opinion.
This availability of differential calibration of macroprudential tools is particularly important in the euro area where the single monetary policy focused on average conditions does not allow member countries to use monetary policy instruments to avoid specific excessive credit booms and/or asset price misalignments.