2  BIS Review 10/2005  Since advances in competition and efficiency are for these reasons correlated with advances in capital soundness, Basel 2 and IAS together will certainly also strengthen the overall stability of the financial system. Two qualifiers are needed here, however, one self-evident and the second more debatable.
If it is to achieve its objectives, macroprudential policy cannot afford to remain static. It has to evolve, in line with the evolution of the economy and the financial system. And the changing nature of financial intermediation in the commercial real estate market is an important structural development.