The system as a whole had to be taken into account as well. The microprudential approach must be complemented by a macroprudential approach. And thus, a new policy area was born out of the crisis. Age-wise, macroprudential policy could be the grandchild of policy areas such as banking supervision and monetary policy. It still has to grow up.
Theories need to be elaborated, empirical evidence gathered, and practical experience gained. A long childhood lies ahead. But at the same time, much has already been achieved. Over the past few years, we have set up a macroprudential framework for Europe. We have defined objectives, developed tools and set out how different policy areas interact.