To use the professional jargon, microprudential control, the preserve of the supervisory authorities, must be complemented by macroprudential oversight, resorting to the expertise of central banks.
In order to improve the symbiosis between these two approaches, a growing number of countries are adopting the so-called “twin peaks model” where the central bank is in charge of the full range of prudential supervision, in both its micro and macro-dimension, leaving the oversight of market integrity and investor protection to a separate institution.