Making macroprudential policy fit for the next decade

Abstract

The dynamics and complexity of all the different segments of the financial market call for forward-looking and flexible macroprudential approaches that can react to a broad range of shocks. It is important that macroprudential policy ensures a stable environment, where intermediaries account properly for emerging risks and have sufficient buffers to absorb unexpected losses. By succeeding in this we will be helping our economies and societies to better adapt to the profound technological and physical changes we are experiencing and to minimise the probability that financial turmoil hampers our transition efforts on these fronts.