Greece: Financial Sector Assessment Program-Technical Note on Macroprudential Policy Framework and Tools

Overall Greece has been proactive and effective in its use of macroprudential policy, but interagency coordination should be formalized. The Bank of Greece (BoG) has been active in its role as the designated macroprudential authority and has introduced a positive neutral (PN) countercyclical capital buffer (CCyB) and borrower-based measures (BBMs) to guard against future risks. The BoG should further enhance its risk surveillance capabilities and be ready to adjust its macroprudential toolkit as risks evolve. Though informal collaborations dating back to the crisis era have worked well, interagency coordination should be formalized through regular meetings of the national interagency Systemic Stability Council (SSC). This is important to prepare for a greater role of non-bank financial institutions as Greek financial markets evolve.