ABSTRACT
This chapter tackles the issue of macroprudential policy in the European Union during the COVID-19 pandemic, with the main focus on events from 2020. Local changes in the restrictiveness of macroprudential requirements (capital buffers) are compared using various measures of restrictiveness (capital requirement, surplus capital, bank lending capacity). Additionally, the main reasons for changes in the restrictiveness of macroprudential policy have been identified, using the qualitative and quantitative analysis. The study sheds light on the positive impact of the loosening of macroprudential policy on the expansion of bank assets. Therefore, it pointed at potential macroeconomic benefits of the macroprudential policy conducted during the pandemic proving its countercyclical nature.
