These factors may not be visible when looking at individual banks, but they can threaten the stability of the entire system. This is one of the core insights from the financial crisis. Countering the cycle and boosting resilience Indeed, the financial crisis showed us that we had to do more than just look at each part of the system, at each bank.
The system as a whole had to be taken into account as well. The microprudential approach must be complemented by a macroprudential approach. And thus, a new policy area was born out of the crisis. Age-wise, macroprudential policy could be the grandchild of policy areas such as banking supervision and monetary policy. It still has to grow up.