BIS central bankers’ speeches  3  Currently policymakers across the globe are working towards stronger baseline policies through raising the quality and quantity of bank capital, broadening liquid assets, requiring systemically important financial institutions to hold additional capital and liquidity, and tightening oversight of securitisation, over the counter derivative markets and shadow banking.
With higher capital and liquidity in the system, systemic risk will be lower. The lower is systemic risk, the lesser the need for a highly activist, time-varying macroprudential policy regime. 5. What policy instruments are available? Perhaps surprisingly, the macroprudential policy instruments that are most likely to be used are those that microprudential policy makers are relying on today.