Furthermore, when calibrating their interventions, supervisors should take into account the complementarity of micro- and macrosupervision, which rely on the same set of tools and similar transmission mechanisms. The overlap between micro- and macroprudential policies is particularly strong in economies with concentrated banking sectors, where the separation between “micro” and “macro” is tenuous.
At a minimum, this complementarity gives macroprudential authorities in the euro area another reason not to be too restrictive (micro requirements are already high). Beyond that, it suggests that microprudential authorities may  5  Borio and Zhu (2012); Jimenez et al. (2014), for bank lending. Bekaert et al. (2013), for market finance. 6  Alessandri et al. (2015).