The main methodological techniques for such a system may include: stress test development at aggregate level, systemic early-warning systems providing alerts at a macroeconomic level and warnings of situations endangering financial stability. Another of the leading objectives of the macro-prudential approach is to mitigate the pro-cyclical nature of financial systems.
Proposals such as the ones put forward by Goodhart (time-varying capital requirements on the basis of credit growth) or Kashyap, Rajan and Stein (capital insurance mechanism) as additional elements in the capital-regulation toolkit are welcomed.