Abstract

The paper deals with macroprudential policy (MAP) for the limitation of systemic risk, its introduction in the European Union and its future working with the Single Supervisory Mechanism (SSM). The operative framework of MAP and European choices regarding intermediate targets and instruments are therefore described. Finally, the working of MAP is discussed within the context of the present rather complex, fragmented, cumbersome European supervisory architecture. Specific actions are required to correct these shortcomings if Europe is to achieve comprehensive, rational, simplified, effective, efficient financial supervision in terms of MAP and other functions, without additional burdens for the institutions supervised.