The European  BIS Review 77/2009  7  Systemic Risk Board (rather than Council) has the powers to make recommendations but not to implement policies directly. It will be supported analytically and logistically by the ECB. The Commission will present legislative proposals this autumn that will further specify the new institutional arrangements.
These include capital requirements for institutions, leverage ratios, loan-to-value ratios, terms and conditions for mortgage insurance, and a variety of other measures. These instruments can be targeted to risks to the entire financial system that stem from particular markets or institutions. Using these instruments to safeguard the whole financial system – not just individual institutions – is the essence of the macroprudential approach.