Still, since the counter-cyclical capital buffer is reviewed on a quarterly basis, this policy tool provides a highfrequency (compared to the typical duration of financial cycles) mechanism to respond to cyclical shifts in credit conditions. A small but increasing number of EU countries have raised the counter-cyclical capital buffer in recent times.
Of course, the bedrock of our macroprudential policy framework is formed by the borrowerbased measures we have introduced in relation to mortgage loans. We view our mortgage measures that put ceilings on loan-to-income (LTI) and loan-to-value (LTV) ratios as essential in limiting systemic financial risk emanating from the mortgage market, while acting to protect consumers from the risks associated with overborrowing.