Macroprudential policy

In addition to setting the objective of price stability, the Act on the CNB lays down that the CNB shall set macroprudential policy by identifying, monitoring and assessing risks jeopardising the stability of the financial system and, in order to prevent or mitigate these risks, contribute by means of its powers to the resilience of the financial system and the maintenance of financial stability. On the practical level, macroprudential policy can be defined as the application of a set of instruments whose aim is to reduce the vulnerability (or increase the resilience) of the financial system by containing the risks that individual financial institutions or the links between them may create for the system as a whole.

The macroprudential policy strategy

The macroprudential policy tools applied in the Czech Republic

Intermediate objectives and tools of macroprudential policy

In line with the ESRB Recommendation (external link), the Czech National Bank chooses appropriate macroprudential tools on the basis of intermediate objectives reflecting the existence of several sources of systemic risks and their own transmission mechanisms.

Stance of the CNB on international initiatives in the area of macroprudential policy and financial stability