Macroprudential Policy and Systemic Risk: An Overview

Abstract

This paper aims to address the issue of macroprudential policy in terms of objectives and its instruments, and with reference to the challenges it faces.The analysis performed shows that the financial system is characterized by high sensitivity to the pressures existing in international financial markets, so macroprudential policy and its instruments support investor protection, the limiting of systemic risk and financial stability, being defined through a high flexibility, increased transparency and lower costs of implementation. The analysis emphasizes the vital need for macroprudential policy but also macroeconomic and financial policies in order to ensure financial stability.

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