Cross-Border Spillover Effects of Macroprudential Policies: A Conceptual Framework

81 Pages Posted: 23 Jun 2020

See all articles by Christoffer Kok

Christoffer Kok

European Central Bank (ECB)

Dennis Reinhardt

Bank of England

Date Written: June, 2020


Due to the international dimension of the financial sector within the EU and beyond, domestically oriented macroprudential policies have the potential to create material cross-border spillover effects. This occasional paper provides a detailed overview of the academic and empirical literature on cross-border effects of macroprudential policies. It also summarises a stocktaking exercise, conducted by a task force of the ESCB’s Financial Stability Committee (FSC), on existing national approaches within the EU for assessing and monitoring such cross-border spillover effects. The paper accompanies an FSC report presenting a framework to be used by macroprudential authorities when assessing cross-border spillover effects induced by enacted or planned policy measures.

Keywords: banking union, cross-border spillovers, European Central Bank, financial stability, macroprudential policies, systemic risks

JEL Classification: E42, E58, F36, G21

Suggested Citation

Kok, Christoffer and Reinhardt, Dennis, Cross-Border Spillover Effects of Macroprudential Policies: A Conceptual Framework (June, 2020). ECB Occasional Paper No. 2020242, Available at SSRN: or

Christoffer Kok (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314

Dennis Reinhardt

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

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