Against this broad background, this section endeavours to focus on defining the priorities for action in so far as financial regulation and supervision are concerned. Macro prudential orientation As observed, the build up of micro institutional risks has resulted in the unfolding of massive macro risk, partly through the rise in unsustainable asset prices.
As a supplement to sound micro-prudential and market integrity regulation, national financial regulatory frameworks therefore should be reinforced with a macro-prudential oversight that promotes a systemwide approach to financial regulation and supervision and mitigates the build-up of observable excess risks across the system.