10 years ago, the financial crisis demonstrated that financial risks can potentially affect both the financial system and the real economy. It also underlined that financial crises are expensive and affect the welfare of citizens. The lesson was that we need to ensure that the financial system can serve the real economy in good and in bad times.
There was a clear need for better and more comprehensive regulation. As a result, macroprudential policy moved up on the political and academic agenda. The idea being that dosed correctly, prudential measures could reduce the likelihood and costs of financial crises.