Forecasted loan loss provisions contributed positively in the second period because they became less negative over the period November 2016 – August 2017 while forecasted operating expenses increased. Macroprudential policy Let me now turn to the role of macroprudential policy in this risk environment.
The objective of macroprudential policy is to prevent and mitigate systemic risk by strengthening the resilience of the financial system and by smoothening the financial cycle. Since November 2014, when the ECB was granted macroprudential responsibilities and competence to top-up the measures taken by national authorities, more than 100 decisions on macroprudential measures have been taken (see Figure 17).