There are
also macroprudential tools — regulatory measures that can be used to promote not just the safety of an individual financial institution, but also that of the entire financial system.
Not exact matches
Authorities could
also, in principle, adjust
macroprudential tools to dampen financial cycles — tightening them when leverage is building up and risk taking is increasing, and easing those requirements when that cycle turns.
It must
also set up sensible institutional frameworks and
macroprudential controls.
A sound financial system
also requires
macroprudential tools to lean against credit cycles.