Tools and Instruments. Macro-prudential tools are appropriate instruments that can be used to contain systemic risk. The Board shall discuss the tools that might be necessary for adoption at the national level. The Board shall be guided by the tools defined and explained by the ESRB on this matter. The Board shall establish a list of tools to be applicable to the local scenario by means of a policy recommendation which shall be approved according to the decision making process explained in article 7. The list of tools shall then be issued in the form of a CBM Directive, following approval by the Board of Directors of the Bank. This procedure shall apply to: (i) any tool of a macro-prudential nature to be issued and/or implemented by the Bank as a macro-prudential authority, and (ii) any other tool of a prudential nature that may be relevant to the attainment of the objective of this MoU which the Board recommends for adoption according to the decision making process in article 7.
Appears in 2 contracts
Sources: Memorandum of Understanding, Memorandum of Understanding