We need more data to examine and understand it more thoroughly. Otherwise, we might overlook risks that could threaten the financial system. A banking supervisor’s perspective But let’s now turn away from shadow banks and towards regular banks. As I just said, maintaining financial stability is about two things.
First, it is about preventing the build-up of bubbles; second, it is about making the system more resilient. Supervising individual banks helps boost resilience. Indeed, for a long time, microprudential supervision was the only policy field with a specific financial stability goal. But this has changed a lot. So, let’s take a closer look at how banking supervision today helps to ensure financial stability.