For example, in many countries the tools for containing excesses in housing markets and for building resilience against the realization of housing-related risks are not strong enough. In addition, we should develop new tools to address systemic risks potentially developing in the shadow banking sector.
The availability of strong national macroprudential toolkits and the courage to use these tools are of utmost importance in the current environment of very low interest rates. The ECB’s Governing Council is closely monitoring any potential risks to euro area financial stability, including those from excessive risk-taking. Currently, these risks are contained. Should they emerge, macroprudential policy would be best suited to address them.