ESRB improves its macroprudential stance framework
2 min1/15/2024

The European Systemic Risk Board (ESRB) has published a report on improvements to its assessment of the macroprudential stance. The report uses two complementary approaches to assess the financial system's resilience and policy stance relative to risks. The growth-at-risk approach uses a model to estimate the impact of macroprudential policy on future economic growth, while the indicator approach compares readily available indicators for risks, resilience, and policy. The report documents technical improvements made to the framework, including robustness checks, bias correction, and simplification. The macroprudential stance assessments provide input into policy decisions but are not final statements or recommendations. A harmonized assessment by the ESRB may help policymakers address systemic risks in their countries. The ESRB will continue to refine the framework.