Hence, macro-prudential policies and institutions are inherently complex because they involve authorities taking cross-sectoral perspectives (banking, insurance, other financial intermediaries and financial market infrastructures), micro- and macroeconomic perspectives, and crosscountry perspectives.
There is, thus, no single institutional set-up for the organization of macroprudential policies and the assignment of powers.3 Generally though, central banks play an important role in macro-prudential policies across countries, reflecting their expertise in analyzing macroeconomic, system-wide developments in the financial sector and the real economy.