Importantly, these tools can reach beyond the banking system and also address the build-up of leverage and liquidity risks in parts of the financial system, where we have seen rapid growth in recent years. Since then, we have made some progress on this front. For example, the ESRB has published a comprehensive report on the macroprudential use of margins and haircuts this year.
The report describes in detail the mechanics of how these tools would affect leverage and procyclicality. Nevertheless, the report also acknowledges a number of implementation challenges and calls for further empirical and conceptual analysis.