It remains to be seen whether the soon-toturn-operational European Systemic Risk Board (ESRB) can serve as an effective coordination vehicle for CESEE macroprudential policies. Finally, allow me to make a precautionary warning against too much reliance on macroprudential policies in facilitating financial stability. In my opinion, although they are necessary, they certainly are not sufficient in themselves for this purpose.
First, without sustainable macro policies (fiscal in particular) and price stability the financial system may easily find itself in trouble or may intermediate insufficiently. Secondly, although its aim is to reduce system-wide risk, macroprudential policy in the end is a set of particular tools targeting particular problems in particular parts of the financial system.