How does macroprudential regulation relate to conventional measures to

How does macroprudential regulation relate to conventional measures to prevent fraud and promote transparency?

What will be an ideal response?

ANSWER

Conventional measures address the danger that particular firms and individuals might engage in behaviors contrary to the interests of others. Macroprudential regulation addresses the danger that behaviors that seem benign in isolation may, in aggregate, threaten the stability of the financial system. Macroprudential regulators monitor systemic conditions and trends. If they conclude that a systemic threat is emerging, they rely heavily on the ability of conventional regulators to adjust and to tighten their oversight to discourage the relevant behaviors.