Maintaining Financial Stability

Abstract

This chapter describes the emergence of a new role for central banks after the global financial crisis, focusing on the complex and dynamic interactions within the financial system as a whole. This field of so-called macroprudential policy has developed into a separate pillar for financial stability within central banks with its unique perspective and own instruments. It recognizes different dimensions and strategies to address systemic risks. As a relatively new responsibility, macroprudential expertise continues to evolve with several interesting, unanswered policy challenges toward the future.