Countercyclical macroprudential policy These models will also help micro- and macroprudential authorities to address challenges in the current macro-financial environment. Over the past few months, we have observed a deteriorating global economic outlook and increasing uncertainty. This environment might put pressure on banks’ profitability and hamper their intermediation capacity as margins become squeezed and the flow of new business slows down.
Under these conditions, it is particularly important that banks remain resilient and can withstand adverse shocks. Since the financial crisis, the resilience of euro area banks has improved significantly. This has been facilitated by the economic recovery and by an accommodative monetary policy stance.