Review has identified the following recommendations

In response to the aforementioned findings and issues, the peer review has identified the
following recommendations for consideration by the German authorities:

Macroprudential policy framework

• The FSC should consider further specifying its role on financial stability issues – such
as in the development and implementation of prudential regulations and involvement
in crisis management and resolution – to ensure clarity vis-à-vis its member
institutions and to enhance accountability.

• The FSC should put in place an analytical framework setting out the: (a) conditions
for triggering warnings and recommendations; (b) functioning of the ‘comply or
explain’ mechanism; and (c) approach to assessing the impact of the policy action.

• The FSC should develop a comprehensive macroprudential toolkit on an ex ante basis
to ensure the timely application of relevant tools if the need arises.

• The FSC should develop a comprehensive strategy to maximise the effectiveness of
its communication and avoid duplication with its member institutions. This strategy
should include the identification of target audiences and the calibration of the range
and content of communication tools accordingly.