Preparing for the Next Financial Crisis

Macroprudential policy 249

measures, especially structural measures, are only visible in the long term and

are not always quantiable even though their costs (notably implementation

and compliance costs) are immediately perceived; it is a common feature of

all structural policies. In addition, these measures target distribution tails (rare

events). This conguration can lead to perverse eects, such as a certain tol-

erance on the part of the regulator (forbearance). In this case, the use of rule-

based policies should be preferred (Saporta, 2009). This may be implemented

through quasi- automatic procedures to trigger an instrument on the basis of

indicators (ESRB, 2018).

As regards more specically the communication from the authorities re ...