Economists have a name for this common-sense notion: the Tinbergen 2/4  BIS central bankers' speeches  principle. Effective supervisory, regulatory, and macroprudential policy tools appear to be well placed to address financial vulnerabilities.
In particular, these tools may be used to increase the resilience of the financial sector against a broad range of adverse shocks and, perhaps, lean against the buildup of specific financial vulnerabilities. At the Federal Reserve, we have emphasized a set of structural, or through-the-cycle, regulatory and supervisory policies as our primary macroprudential tools to promote financial stability.