And, in fact, the ECB’s and the IMF’s financial stability analyses confirm that specific asset segments, among which real estate, point to some overheating in several countries. The issue then arises as to whether macro-prudential policy needs to react.
In fact, in the last quarter, and considering only the euro area, four countries – Belgium, The Netherlands, Slovenia and Estonia – have activated macro-prudential policy tools (all capital-related measures), in line with the EU regulatory framework. This new policy area is getting traction and robust analysis is needed to allow for timely and adequate interventions.