Let me explain the policy environment, the role of central banks, and the priorities for future work by developing three arguments:  First, cyclical risks and structural change in the real economy shape the financial stability outlook. Second, macroprudential policy in a monetary union is the first line of defence against financial stability risks, and it requires balancing national and supranational responsibilities.
Securities markets can function efficiently only after proper pricing for risks and returns is made. Therefore, it is deemed desirable that many investors who have a variety of evaluation criteria should participate and that the markets should be highly liquid.