This 24th edition of the Banque de France’s Financial Stability Review is a special issue devoted to macroprudential policy in the midst of the Covid crisis. While this is not a crisis of the financial system, and banks have on the contrary provided some of the responses to combat the economic crisis, it has nevertheless occurred in the context of financial vulnerabilities resulting from a vibrant financial cycle expansion and persistently low interest rates: high valuations of some assets, high levels of public and private debt, and the growing strength of the non bank financial sector.
The different points of view expressed in this edition provide insights into the issues that will be on our macroprudential agenda in the coming decade. In particular, it is essential (i) to better address the international dimension of systemic financial risk, and more specifically to strengthen the European macroprudential framework; (ii) to extend the application of macroprudential rules to the financial sector as a whole, beyond banks; (iii) to establish better coordination between monetary
and macroprudential policies on financial stability issues.