In favour of basing macroprudential policies on a serious analysis of the risk of credit growth

On 18 March 2019, France’s High Council for Financial Stability decided to increase the level of countercyclical capital that French banks have to hold to 0.5%. It therefore considers credit growth to be too rapid in France and a threat to financial stability . At the same time, the ECB de cided to keep its key interest rate at 0% and to stage a new TLTRO (2-year loans to banks at favourable terms ), which shows that the ECB believes that banks should be encouraged to lend more to stimulate the euro-zone economy . Is there a contradiction between France’s decision to curb credit and the ECB’s decision to boost it? Is the decision of the Bank of France (High Council for Financial Stability) a threat to French growth?