Elements of a macroprudential agenda include •  monitoring large or rapidly increasing exposures – such as to subprime mortgages – across firms and markets, rather than only at the level of individual firms or sectors;  •  assessing the potential systemic risks implied by evolving risk-management practices, broad-based increases in financial leverage, or changes in financial markets or products;  •  analyzing possible spillovers between financial firms or between firms and markets, such as the mutual exposures of highly interconnected firms;  •  ensuring that each systemically important firm receives oversight commensurate with the risks that its failure would pose to the financial system;  •  providing a resolution mechanism to safely wind down failing, systemically important institutions;  •  ensuring that the critical financial infrastructure, including the institutions that support trading, payments, clearing, and settlement, is robust;  •  working to mitigate procyclical features of capital regulation and other rules and standards; and  •  identifying possible regulatory gaps, including gaps in the protection of consumers and investors, that pose risks for the system as a whole.
Christine Lagarde: IMFC Statement Statement by Ms Christine Lagarde, President of the European Central Bank, at the forty-third meeting of the International Monetary and Financial Committee, Virtual IMF Spring Meetings, Washington DC, 8 April 2021.