Limiting credit risk exposures from borrowers and/or ensuring the resilience of banks would help limit the potential costs of house price collapses.
The establishment of the ESRB – an  BIS central bankers’ speeches  5  independent body responsible for the macro-prudential oversight of the EU financial system – along with the new capital and liquidity measures for banks marks a big step in the right direction. However, the macroprudential policy toolkit is currently in the build-up phase.