Respect for the independence of the various authorities involved in securing financial stability should not imply separation and a lack of coordination. Thus, I strongly agree with Danielle Nouy that “micro-prudential supervision needs to be complemented by a macro-prudential perspective”. It is imperative, however, that the macroprudential toolbox be further enhanced with innovative tools beyond those focused on capital requirements.
The aim of these and additional measures is to make CCAR more the culmination of year-round supervision of risk-management and capital planning processes than a discrete exercise that takes place at the same time as the supervisory stress tests.