Foreign banks in CEE countries may need non-standard financial safety measures.
The article discusses challenges in creating effective macroprudential policies in Central and Eastern European EU Member States, focusing on Poland. It suggests that countries with large foreign banks may need unique tools not covered by EU law. The study recommends entrusting macroprudential policy to a committee led by the central bank to coordinate financial safety net institutions and use non-standard instruments effectively. This approach allows for better expertise and coordination, reducing the risk of conflicting actions and providing oversight over fiscal tools.