That experience has shown that the business cycle and the financial cycle are not necessarily synchronized; long periods of BIS central bankers’ speeches  3  disconnect between the two cycles can materialize. In particular, the financial cycle tends to have larger amplitude and lower frequency than the normal business cycle.
Macro-prudential policy bridges the gap between the micro-prudential supervision of individual banks and monetary policy. Its objectives are, first, to enhance the resilience of financial institutions and the entire financial system, and, second, to smooth the financial cycle.