Macroprudential policy aims to eliminate or limit systemic risks to prevent crises or lessen their consequences. By implementing macroprudential policy, the NBU identifies and assesses risks to financial stability and applies measures to minimize those risks. Thus, we promote the stability of the entire financial system.
The NBU mitigates risks in the financial system by requiring banks to:
The NBU draws attention of financial sector participants to financial stability risks in its publications. This helps prevent the risks from spreading.
The regulator develops macroprudential policy with regard to international best practices. The NBU’s approach is based on EU practice and the recommendations of the Basel Committee on Banking Supervision.
Macroprudential policy is a modern toolkit aimed at preventing systemic risks, as financial crises occur even when individual banks seem resilient. The financial crisis of 2008-2009 promoted introduction of macroprudential policy around the world.