This applies, in particular, to the large, complex and interconnected institutions on which a substantial part of the macro-prudential analysis is likely to be centred, as these institutions tend to contribute significantly to the level of risk of the overall system.
The combination of better firm-level and macro-financial statistical information would also likely contribute to inform risk management decisions, as well as to enhance firms’ own stress testing frameworks. But not all information needed is of a quantitative nature. A well-functioning macro-prudential framework needs the support of market participants, also in qualitative terms, as rigorous monitoring of systemic risks will require continuous market intelligence.