A number of regulatory developments complicate matters still further: to mention only a few, consider the ongoing phase-in of the capital rules, the adoption of stringent liquidity requirements, the introduction of the TLAC framework, and the implementation of the BRRD. 3. The question, in conclusion, is how we should steer micro- and macro-prudential tools towards the objectives of stability and growth.
2 Work at the ECB finds evidence that financial cycles, defined as the joint movement of house prices and credit,  are the single best predictors of banking crises (see Schüler, Y., P. Hiebert and T. Peltonen, (2016), “Coherent financial cycles: Why extending credit can be an asset”, SSRN Working Paper.