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Towards a macroprudential framework for financial supervision and regulation?


  • Claudio E. V. Borio


Over the last decade or so, addressing financial instability has risen to the top of the policy agenda. This essay argues that in order to improve the safeguards against financial instability, it may be desirable to strengthen further the macroprudential orientation of current prudential frameworks, a process that is already under way. The essay defines, compares and contrasts the macro- and microprudential dimensions that inevitably coexist in financial regulatory and supervisory arrangements, examines the nature of financial instability against this background and draws conclusions about the broad outline of desirable policy efforts.

Suggested Citation

  • Claudio E. V. Borio, 2003. "Towards a macroprudential framework for financial supervision and regulation?," BIS Working Papers 128, Bank for International Settlements.
  • Handle: RePEc:bis:biswps:128

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    References listed on IDEAS

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    More about this item


    systemic risk; macroprudential; microprudential; financial regulation; financial imbalances; financial stability;

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services


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