Instead, MAP could have discouraged, for instance, excessive mortgage lending through higher LTVs on real-estate loans, or a disproportionate reliance on wholesale funding through an NSFR-type instrument.9 Crucially, these would have operated across the board, regardless of whether banks appeared individually resilient or not. 3.
Concentration  The banking systems of the euro area have relatively high, and rising, levels of concentration.10 In the medium term further impetus in this direction could stem from market pressures and from Banking Union. So far the debate on macroprudential policy has ignored the question of how the structure of the banking system itself might affect an MAP regime.