Macro-prudential Regulation Strategies and Tools

The 2007-08 global financial crisis highlights that the preservation of financial stability requires going beyond the micro-prudential regulation by promoting a macro-prudential policy. This latter has to cope with the different dimensions of the global financial risks, especially the procyclicality of the financial system and the problems related to interconnectedness and “too big to fail” financial institutions. This paper reviews the different tools which could be dedicated to the strengthening of the resilience of the global financial system both in its time and cross-sectional dimension.