Bank regulation and prudential management
Macroprudential regulation means regulation for the welfare of the financial system as a whole, rather than individual financial institutions alone.
One insight from the Global Financial Crisis (GFC) was that bank viability regulation at the macro/systemic level had been dangerously neglected pre-crisis.
Examples of developments in macroprudential regulation and supervision include capital buffers.
At the individual institution level, 'macroprudential' management means recognition of the system-wide context in which the individual institution operates, and establishing risk management responses accordingly in that broader context.