Opinion of the European Central Bank of 25 February 2015 on macro-prudential policy strategy (CON/2015/7)
Date: 2015-02-25
Institutions: European Central Bank
Subjects: Latvia, central bank, financial stability, financial supervision, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 25 February 2015 

on macro-prudential policy strategy 

(CON/2015/7) 

Introduction and legal basis 

On 31 December 2014, the European Central Bank (ECB) received a request from Lietuvos bankas for 

an opinion on a draft macro-prudential policy strategy which will be adopted by resolution of the Board of 

Lietuvos bankas (hereinafter the ‘draft resolution’). 

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 

Functioning  of  the  European  Union,  and  the  third  and  sixth  indents  of  Article 2(1)  of  Council  Decision 
98/415/EC1,  as  the  draft  resolution  relates  to  a  national  central  bank  and  rules  applicable  to  financial 

institutions  insofar  as  they  materially  influence  the  stability  of  financial  institutions  and  markets.  In 

accordance  with  the  first  sentence  of  Article 17.5  of  the  Rules  of  Procedure  of  the  European  Central 

Bank, the Governing Council has adopted this opinion. 

1. 

Purpose of the draft resolution 

The  aim  of  the  draft  resolution  is  to  ensure  the  effective  and  transparent  implementation  of  macro-

prudential  policy.  To  this  end,  and  in  accordance  with  Recommendation  ESRB/2013/1  of  the  European 
Systemic Risk Board2 (hereinafter the ‘ESRB Recommendation’), the draft resolution sets out an overall 

framework  defining  the  ultimate  and  intermediate  macro-prudential  policy  objectives  and  lists  a  wide 

range of macro-prudential instruments that may be adopted. Furthermore, it outlines the general process 

and principles of decision-making, communications and cooperation with other authorities in the context 

of macro-prudential policy. 

2. 

Observations 

2.1.  Follow-up assessment of ESRB recommendations is a task of the ESRB in accordance with Article 
17  of  Regulation  (EU)  No  1092/20103.  In  principle,  it  is  not  for  the  ECB  to  assess  the  national 

measures taken in response to an ESRB recommendation.   

1  

2  

3  

Council  Decision  98/415/EC  of  29 June  1998  on  the  consultation  of  the  European  Central  Bank  by  national 
authorities regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 
Recommendation ESRB/2013/1 of the European Systemic Risk Board of 4 April 2013 on intermediate objectives and 
instruments of macro-prudential policy (OJ C 170, 15.6.2013, p. 1). 
Regulation (EU) No 1092/2010 of the European Parliament and of the Council of 24 November 2010 on European 
Union  macro-prudential  oversight  of  the  financial  system  and  establishing  a  European  Systemic  Risk  Board 
(OJ L 331, 15.12.2010, p. 1). 

 
 
 
 
 
                                                 
ECB-PUBLIC 

2.2.  Without  prejudice  to  the  above  and  to  any  actual  follow  up  assessment  to  be  carried  out  by  the 

ESRB,  the  ECB  welcomes  the  draft  resolution.  In  particular,  the  ECB  welcomes  the  provisions 

which  envisage  cooperation  and/or  coordination  between  Lietuvos  bankas  and  the  ECB  when 

adopting decisions on macro-prudential policy, which is in accordance with Article 5 of Regulation 
(EU) No 1024/2013 of the European Parliament and of the Council4  5. The ECB suggests that the 

general  provisions  of  the  draft  resolution  refer  to  the  fact  that  the  draft  resolution  implements  the 

ESRB  Recommendation.  This  will  help  the  public  to  identify  the  source  for  the  draft  resolution  in 

addition to the legal basis provided by the Law on Lietuvos bankas. 

2.3.  The  ECB  welcomes  the  fact  that  the  draft  resolution  provides  a  wide  and  non-exhaustive  list  of 

macro-prudential policy instruments which can be adopted, since additional macro-prudential policy 

instruments might be necessary in the future to prevent or mitigate new risks to financial stability. 

Therefore,  the  ECB  also  welcomes  the  fact  that  the  draft  resolution  provides  that  it  will  be  the 

responsibility of Lietuvos bankas to periodically assess the macro-prudential policy strategy at least 

once  every  three  years,  which  leaves  open  the  possibility  of  including  other  macro-prudential 

instruments, as provided for in recommendation D of the ESRB Recommendation. 

This opinion will be published on the ECB’s website. 

Done at Frankfurt am Main, 25 February 2015. 

[signed] 

The President of the ECB 

Mario DRAGHI 

4  

5 

Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank 
concerning policies relating to the prudential supervision of credit institutions (OJ L 287, 29.10.2013, p. 63). See  also 
Recital (24) of that Regulation. 

  With regard to cooperation with other institutions, see Articles 21 and 23 of the draft resolution. See also Article 474 
of  the  Law  on  Lietuvos  bankas  with  respect  to  the  Ministry  of Finance.  Žin.,  1994,  Nr.  99-1957;  2001,  Nr.  28-890. 
See  also  point  2  of  recommendation  B  of  Recommendation  ESRB/2011/3  on  the  macro-prudential  mandate  of 
national authorities (OJ C 41, 14.2.2012, p. 1). 

2