For example, the Bank of England has recently included a financial stability knock-out in its forward guidance on monetary policy (Kohn (2013). BIS central bankers’ speeches  3  As noted by Federal Reserve Governor, Jeremy Stein (2012), monetary policy“gets in all the cracks” of the financial system.
It affects the cost of credit for all borrowers, including those that may be avoiding macro-prudential regulations as a result of disintermediation. Other policy initiatives that seek to alleviate supply-demand imbalances in asset markets can also be helpful.