Rather, a focus on counterparty risk management places the responsibility for monitoring risk squarely on the private market participants with the best incentives and capacity to do so. 4  BIS Review 41/2006
In terms of frequency, monetary policy tends to follow the business cycle, whereas macroprudential policy is related to the financial cycle. Certainly, these cycles are not independent from one another. But the BIS has calculated that the financial cycle in advanced economies has an average length of about 16 years, whereas business cycles tend to have a duration of 1 to 8 years.