Kingdom of the Netherlands-Netherlands: Financial Sector Assessment Program:: Technical Note-Macroprudential Policy Framework

IMF Staff Country Reports, April 13, 2017

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Canonical URL: Kingdom of the Netherlands-Netherlands: Financial Sector Assessment Program:: Technical Note-Macroprudential Policy Framework

Authorities have strengthened the institutional arrangement for macroprudential policy by enhancing the Netherlands Bank’s legal mandate.
The Financial Stability Committee (FSC) has been established to support macroprudential governance.
Assessment: institutional reforms have improved the framework, but "there is room for improvement."

The authorities’ analysis of systemic vulnerabilities is described as "sophisticated and timely."
Ongoing monitoring implies attention to potential buildup of systemic risks in the financial system.

Authorities have been using the range of macroprudential instruments at their disposal.
Finding: "further tightening will be necessary to contain a potential buildup of systemic risk in the financial system."
Policy implication: continue deploying and, where appropriate, tighten macroprudential tools to mitigate systemic risk, with the FSC and DNB playing central roles in implementation and communication.

Subject: Financial institutions; Financial sector policy and analysis; Financial sector stability; Macroprudential policy; Macroprudential policy instruments; Mortgages; Systemic risk
Keywords included: AFM project team; CR; delinquency ratio; DNB staff; DNB's communications; DSTI ratio; Europe; Financial sector stability; FSC issues warning; interest rate; ISCR; Macroprudential policy; Macroprudential policy instruments; mortgage loan; Mortgages; Systemic risk