Since December 2021 the Banco de España has three new macroprudential tools
(Circular 5/2021): the sectoral component of the countercyclical capital buffer, limits on
sectoral concentration, and limits and conditions on loan origination. The new sectoral
instruments will allow it to address the risks that are concentrated in specific sectors, for
which the aggregate macroprudential tools would be less effective, as they are applied
equally across all sectors. In order to apply these tools, any potential vulnerabilities
building up in the different sectors must be previously identified by means of adequate
indicators. This article analyses the battery of sectoral indicators proposed in the circular,
which may be useful for activating these new macroprudential tools. Their calculation
methodology is similar to that used for the general countercyclical capital buffer indicators.
In addition, a study of their predictive power is conducted, which shows their efficiency in
identifying risks early. According to these indicators, on data up to 2021 Q3, no warning
signals have been observed suggesting that these new tools should be activated
