Conversely, reducing leverage as a result of higher equity capital requirements should make the risk premium on equity (and debt) decline. 8  BIS central bankers’ speeches  Structural reforms may also contribute to successful macroprudential policies. This is because structural measures add simplicity and transparency of financial institutions, and reduce their interconnectedness.
It is even more obvious in the banking industry. Doubtless, from a global perspective, the financial sector of Macao is highly internationalized. The most luring feature of the Macao financial sector is its profitability. The size of the financial sector here is not spectacular but the return on capital is lucrative. Further growth was registered for 2007.