Selecting the right instruments and the right intensity is not a trivial task – there is the risk of taking action too late as well as of acting too early or too strongly, or of not addressing the most severe vulnerabilities. For this reason, the Bundesbank and the Financial Stability Committee discussed various options and started with a “soft” policy tool: communication.
Press briefings were held even prior to activating the buffer (in December 2018) to explain the policy decisions being recommended (in May 2019). There is a long history of central bank communication on monetary policy including regular press conferences following monetary policy decisions. Communication on macroprudential policy may have a shorter track record, but it is highly relevant nevertheless.