0 used to describe laws, rules, and conditions for banks and financial organizations which are intended to protect the whole financial system from risk:
macroprudential policy/regulation/supervision
We do not want to disconnect the supervision of the financial markets from macroprudential supervision.
She has since been researching financial crises, financial contagion, capital controls, macroprudential regulations, foreign investment and tax holidays.
The role of macroprudential regulation is particularly stressed by the last two of them.
The macroprudential approach, on the other hand, recognizes that risk factors may configure endogenously, i.e., as a systemic phenomenon.
In these environments macroprudential intervention can improve social efficiency.
Hence, they infer a potentially substantial leakage of macroprudential regulation of bank capital.
Therefore, global coordination of macroprudential policies is considered as necessary to foster their effectiveness.
Some theoretical studies indicate that macroprudential policies may have a positive contribution to long-run average growth.
