Germany: Financial Sector Assessment Program Technical Note—Macroprudential Policy Framework And Tools
IMF Staff Country Reports, August 3, 2022
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- Germany: Financial Sector Assessment Program Technical Note—Macroprudential Policy Framework And Tools
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Bibliographic details
- Published: August 3, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400217395.002
Overview
- Germany’s macroprudential policy framework and toolkit are well developed.
- The FSAP found the institutional arrangements for macroprudential policy to be mostly sound and operating well.
- Capacity and expertise in risk monitoring are good, supported by the analytical power and data access of the central bank and close coordination between the macro- and microprudential arms of the financial supervisory authorities.
Key findings
- Institutional arrangements: Mostly sound and operating well.
- Risk monitoring: Capacity and expertise are good due to central bank analytical power and data access.
- Coordination: Close coordination exists between macroprudential and microprudential supervisory authorities.
- Toolkit development: Germany’s macroprudential toolkit continues to develop.
Principal outstanding task / Policy recommendation
- Add powers to set caps on debt-to-income and debt service-to-income ratios on residential real estate loans to the already-established powers over loan-to-value ratios and amortization rates.
- Rationale: These additions will place Germany’s toolkit on a par with its peers.
Thematic subjects covered
- Countercyclical capital buffers
- Financial regulation and supervision
- Financial Sector Assessment Program (FSAP)
- Financial sector policy and analysis
- Financial sector stability
- International organization
- Macroprudential policy
- Macroprudential policy instruments
- Monetary policy
International Monetary Fund. Germany: Financial Sector Assessment Program Technical Note—Macroprudential Policy Framework And Tools, August 3, 2022.
Content in this bundle
- 1deuea2022005