makroprudentsiaalset

Makroprudentiaalset refers to a set of policies and measures aimed at ensuring the stability of the financial system as a whole, rather than focusing on individual financial institutions. The term originates from the Greek word "makros," meaning large, and "prudens," meaning prudent or wise. In essence, it is about taking a broad, systemic view of financial risks.

The primary objective of makroprudentiaalset policy is to prevent systemic risk, which is the risk that the failure of one financial institution or market could trigger a cascade of failures throughout the entire system, leading to severe economic downturns. This contrasts with microprudentiaalset policy, which focuses on the safety and soundness of individual banks and other financial firms.

Tools used in makroprudentiaalset policy can include measures that affect lending standards, such as loan-to-value ratios or debt-to-income limits, and capital requirements for financial institutions that vary depending on their systemic importance or the prevailing economic conditions. Cyclical capital buffers, for instance, require banks to hold more capital during periods of rapid credit growth, which can then be released during downturns to absorb losses.

Central banks and financial regulatory authorities are typically responsible for implementing and monitoring makroprudentiaalset policies. The goal is to foster a more resilient financial system that can withstand economic shocks and support sustainable economic growth. It is a relatively newer field compared to microprudentiaalset supervision, gaining prominence after the global financial crisis of 2007-2008 highlighted the importance of systemic stability.