Along with purely statistical procedures, the estimation of the long-term equilibrium level of the non-financial private sector’s long-term financing that the calculation of these indicators requires can be done using models that include the determinants of the demand for credit [Galán y Mencía (2021)]. In any event, the decision to activate the CCyB, which is reviewed quarterly, should not follow an automatic rule based on the trend of this indicator; rather, the regulations in force emphasise the need to take other complementary indicators into account. The Banco de España also tracks potential imbalances in house prices, and in the current account balance, among others. This latter variable reflects how in small, open economies, when the financial cycle is in expansion, a portion of this financing is usually obtained abroad, consequently materialising in a current account deficit. It is moreover crucial to analyse the sectoral disaggregation of credit indicators to identify risks that may be originating in specific sectors. Lastly, we pay particular attention to the output gap, which I will discuss in greater detail later. 13  As to the cross-sectional dimension of systemic risk, the key indicators seek, inter alia, to measure the relative size of a bank, its centrality in the national banking network, its interconnectedness to the rest of the financial system and to other countries’ financial systems, and the complexity of the activities it pursues.
Macroprudential policy for the banking sector cannot suffice to contain the systemic risks 8  See Martínez Miera and Vegas (2021). 18  threatening financial stability if such policy omits the other financial sectors. Indeed, the introduction of new requirements in one part of the financial sector may inevitably induce a shift in or migration of risks to other sectors of the financial system, because the latter are less regulated or simply subject to looser regulation. It is thus vital to also have a macroprudential framework that can reach all segments of the financial system. To date, however, macroprudential policy has been largely confined to the credit institutions sector. Thanks to the work of the BCBS and to the regulatory commitments of the key European institutions and national authorities, it has been possible to develop a macroprudential framework on the basis of microprudential capital requirements. In other financial sectors, by virtue of their activity and the characteristics of the agents operating in them, it would be necessary to develop a specific typology of instruments that act to the benefit of financial stability and fit, in turn, into the general prudential and regulatory framework prevailing in such sectors. Thank you. 19  References Adrian, T., N. Boyarchenko and D. Giannone (2019). “Vulnerable Growth”, American Economic Review, vol. 109, no. 4, pp. 1263-1289. AMCESFI (2020). Annual Report 2019. Anguren, R., L. Gutiérrez de Rozas, E. Palomeque and Carlos J. Rodríguez García (2020). “The regulatory and supervisory response to the COVID-19 crisis”, Financial Stability Review, no.