Systemic Risk Mitigation Through Regulation and Macroprudential Policies

This chapter examines how systemic risk has been addressed in the European Union through post-crisis regulatory reforms and macroprudential frameworks. It first outlines the key institutional innovations that were introduced after the G20 summits and the recommendations of the de Larosi.re Report, thus emphasising the creation of the European Systemic Risk Board and strengthening the supervisory structures. The chapter then analyses the design, purpose and implementation of the macroprudential instruments and evaluates their effectiveness. It concludes that while these instruments did enhance resilience, their outcomes vary across countries and over time, thus highlighting persistent data limitations and policy interaction challenges.