As I stated in a recent speech, one of the overarching principles of macroprudential policy is to act in a pre-emptive and strongly counter-cyclical manner against the build-up of systemic risk. [24] To fulfil this role, macroprudential authorities need to be equipped with tailor-made tools. For the banking sector, macroprudential policy is already operational.
However, despite the stronger fundamentals, a possible disorderly adjustment of global imbalances would pose serious risks to the region.