Enlarging the ‘macroprudential space’ by, 2/5  BIS central bankers' speeches  for example, increasing the amount of releasable capital buffer requirements, would help macroprudential policymakers ensure that banks can lend also during periods of unexpected stress.
In its forthcoming revision of the macroprudential framework of the EU, the European Commission should ensure that the EU legislative framework provides macroprudential policymakers enough flexibility and macroprudential space in applying their macroprudential tools. In my speech two years ago, I also underlined the need to broaden the scope of macroprudential policy beyond the banking sector.