To put it another way, macro prudential policy for the management of overall risk  4  BIS Review 108/2010  within the financial system is needed because the micro prudential soundness of individual financial institutions alone cannot guarantee the stability of the financial system as a whole.
Among macro prudential regulations, the main focus is directed to those targeting systemically important financial institutions (SIFIs). In line with the question of being “too big to fail” that arises in the case of systemically important financial institutions, this proposal needs to be pursued to avoid financial system stability being put at risk by moral hazard.