In the 30 years that followed, these activities were progressively integrated further, both within bank holding companies and beyond, ultimately producing the explosive growth of money market, securitization, and derivative instruments. More fundamentally, the broader category of “financial regulation” reflects the importance of a macroprudential, or systemic, perspective on the financial system.
This means taking account of the relationships among the circumstances and activities of significant financial actors through such channels as funding dependencies and correlated assets. The financial crisis has made what was formerly a minority view—the need to incorporate systemic considerations into the regulatory regime—into something approaching a consensus.