It is a requirement for any entity to assess at the end of each reporting period whether there is any objective evidence that any asset has been impaired as also whether a liability needs to be recognised in settlement of an obligation involving an outflow of resources.
Therefore, an independent macro-prudential policy safeguarding financial stability is needed and should be equipped with its own instruments. More precisely, there are two main objectives of macroprudential policy, which should be distinguished carefully. First, it should provide a framework and rules that give the market participants appropriate incentives. This holds true in normal times but especially when crisis management measures have to be applied.