ea_2012_1_2


 

ORIGINAL SCIENTIFIC PAPER 

 

Macro-prudential View of Financial Stability 
Momirović Dragan*, University Union Belgrade, Faculty of Business and Industrial 

Managemenet Mladenovac, Serbia 

Zdravković Dragan, SVECOM Doo, Beograd  
UDC: 330.33.012  JEL: E-32; G-15; F-42 

 
 
 
 
ABSTRACT – The paper points out the key features of "macro prudential" new framework, 

accepted by all relevant international institutions, in an effort to mitigate the externalities that can 
lead to vulnerability of the financial system and trigger a systemic risk. The emergence of the term 
dates back to the seventies, which over time have been almost forgotten, that was resurrected again in 
the second half of 2008, after a major global economic crisis. There is no single universal precise 
definition of "macro prudential", although most definitions contain several common characteristics.  I 
focus on systematic risk, defines the key objective "macro prudential" or the regulation and 
supervision of the financial system as a whole rather than individual institutions. To limit the risk of 
global financial shocks, suggest different macro prudential indicators and instruments for assessing 
the health of the financial system and its vulnerability to shocks. The regulation and supervision of the 
financial system used macro prudential tools that are designed to enable efficient control policies, with 
particular focus on improving the resilience of the financial system impact of systematic risk. Macro 
prudential analysis focuses on factors that may threaten the stability of the financial system and the 
interrelationship between macroeconomic and financial stability. Macro-prudential application is 
based on rules or discretion, the entire system or individual financial institution, national or global 
level. 
 

KEY WORDS: macro-prudential, macro-prudential instruments, macro prudential indicators, 
macro prudential tools, macro-prudential analysis 

Introduction 

After the Great Depression in the second half of 2008 year almost forgotten name "macro-

prudential" is "like a phoenix from the ashes" suddenly became the most widely used term in 

economic literature and economic debates. Initiatives have emerged from the major relevant 

organizations and institutions in order to identify future sources of risk and adoption of 

operational guidelines in the form of recommendations aimed at preventive action, possibly 

on a possible, future global economic crisis. Initiatives have focused on issues of 

implementation and development process in macro-prudential damping systematic risk and 

resilience of the financial system from future shocks and earthquakes, in particular, from the 

standpoint of international integration with post-ante implications.  

                                                      
* dragomomirovic@gmail.com 



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A key approach to the international community has a strong international focus on the 

analysis of financial stability, which has increased the scope of analytical challenges for 

economic policy makers. Innovations are already visible through greater government 

commitment to effective cross-border cooperation, in regular exchanges of information and 

so on, and on the horizon and the formation of new frameworks for cooperation.  

It is the subject of this paper is that on the basis of relevant literature, point to the 

theoretical aspect, key terminology and the main features macro-prudential process, in order 

to clerks in the absence of literature in the Serbian language, initiate further discussion on the 

specifics macro-prudential approaches have the appearance of systemic risk, due to the 

effects of shocks and external elements, which may cause the vulnerability of the financial 

system.  

The paper consists of eight parts. The first part indicates the origin and evolution of the 

term "macro-prudential" in the second part discusses different approaches to defining 

"macro-prudential", the third part deals with a number of definitions of systemic risk on the 

basis of which is determined by a key objective macro-prudential from which they derive, 

and other intermediate goals in the fourth explains the macro-prudential indicators used for 

assessing the vulnerability of the financial system and is mainly related to the health of 

individual institutions and the macroeconomic variables, in the fifth points to a wide array of 

instruments that can be used for amortization of systemic risk, with the aim of adapting 

existing macro-prudential tools toward the development of prudential standards and to 

mitigate the negative tendencies that can produce systematic risk, in the sixth discusses 

macro-prudential tools that can be used for monitoring with special emphasis on improving 

the resilience of the financial system from the impact of externalities, and amortization of 

pro-cyclical trend of market participants, in the seventh based on the reference frame IMF 

considers macro-prudential analysis with special reference to its role in the timely 

identification of factors that endanger or likely to cause financial instability, and then the 

crisis.  Finally, it discusses the implementation macro-prudential perspective.  

Origin and evolution "macro-prudential" 

The international financial crisis that emerged in the second half of 2008 has sharply 

risen, "the old idea whose time has come" (Borio, 2009) almost neglected macro-prudential 

orientation. The emergence of the term "macro-prudential" two-dating the late seventies, 

when used in the debates of the Bank for International Settlements (BIS) to indicate a 

systematic relationship between the broad orientation of regulatory and supervisory 

framework and macroeconomics. Later, during the mid-eighties, the term "macro-

prudential" was first used by the general public the economic, in the context of the ECSC 

(European Coal and Steel Community) report on the "innovations in international banking, 

devoting several paragraphs to the" macro-prudential policy." The report is defined as a 

policy "that broadly promote security and stability of financial systems and payment 

mechanisms." In a report titled "macro-prudential issues related to financial innovation for 

the period 1980-90. Whatever. "Examines how financial innovation can cause a risk to the 

entire financial system" (Clement, 2010) with special emphasis on securitization and 

derivatives markets, as major carriers of growth in capital market activities. I report, points 

to certain weaknesses that specifically relate to regulatory arbitrage, low-risk evaluation of 



   
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47 

new instruments, the overestimation of their own liquidity risk due to the invisibility of the 

interconnectedness of financial institutions (risk of concentration risk), delay in payment and 

settlement due to the enormous increase of transactions and stronger growth in total debt. 

The report was intended for the Basel Committee, expressing different views and concerns 

on the one hand ECSC, on the other bank auditors who are focused on individual 

institutions. The conclusion was that the preferred approach of functional institutional 

control, with the ability to avoid gaps in regulation. In the future the term "macro-

prudential" has almost ceased to be used except in the BIS documents, especially the ECSC, 

but in public statements and written documents rarely could find. Only after the report 

ECSC in 1992 years linked to developments in international banking relationships, "macro-

prudential" gets a new look. The report was criticized by a group of G10, which are related to 

the role and interaction of banks in non-traditional markets, especially in the derivatives 

markets, insisting, at the same time, to examine the links between different segments of the 

interbank market and the active players in them, and to consider macro-prudential issues 

that may arise from these aspects.  ECSC Working Group is in a later report Brockmeijer 

report from 1995 years, which treats issues in measuring market size and macro-prudential 

risks in derivatives markets kept this term, and the main features of the report relating to the 

lack of transparency in the derivatives market, market concentration in several institutions, 

whose decisions can affect liquidity. At the same time, the term appears in the annual report 

of the BIS in 1997 years, the part that deals with the evolution of central banking. In any case, 

the term used for the analysis of policies to improve the stability of the entire financial 

system, with particular focus on mutual, interactive relationship between institutions and 

markets.  

Macro-prudential term, the later nineties began to be used outside of central banking. In 

particular, the term is expressed 1997th years in the wake of the Asian crisis. MMF was first 

pointed out macro-prudential analysis, 1998 years as "effective control of banks, which must 

be continuously present. This is mainly achieved through an external (off-site) supervision in 

macro-prudential and micro scale. Macro-prudential analysis is based on macroeconomic 

and market intelligence data and focus on important developments in asset markets, other 

financial intermediaries as well as macroeconomic trends and potential imbalances. The 

main policy is to monitor the development of better statistics, which should assess the 

vulnerability of the financial system, the so-called macro-prudential indicators. "(IMF, 2000)  

It was only the beginning of the new century began the first efforts toward a more precise 

definition macro-prudential process with the aim of finding some implications toward 

building new architecture macro-prudential solutions. The architect of this effort was the 

then Director General of BIS E. who in a speech in 2000 the "International Conference of 

Banking Supervisors macro-prudential and comparative view of macro-prudential 

regulation and super-review", advocated that financial stability can be achieved by 

strengthening macro-prudential perspective. He pointed to two different aspects macro-

prudential approach. The first aspect focuses on the entire financial system with the aim of 

limiting the costs of financial distress in the real sector. Second, it refers to the recognition 

that the overall risk depends on the behavior of financial institutions. Micro-prudential 

approach is defined as limiting the risk of failure of individual institutions. The result of the 

adverse effects of externalities is included.  



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48

Later, this perspective has developed Borio (2003). During this period, use of the term 

becomes widely accepted and used together (for example, IMF 2000). After that, many 

countries have gradually begun to increasingly use the term macro-prudential perspective, 

as already suggested by the works of Knight (2006), White (2006) and BIS (2008), to the 

outbreak of major global crisis in the second half of 2008 years received an extraordinary 

impetus and importance in the direction of application in order to combat the spread of 

infection to the crisis. The term is widely accepted by politicians and the academic 

community that fought (2009) cited a reference, "to paraphrase Milton Friedman might say 

that we are all macro-prudential now." The old idea whose is coming. 

Terms used in wide academic and political circles have two dimensions. Deliberately 

styling the two views is intended to indicate the orientation of the two co-exist with each 

other in the existing framework macro-prudential perspective. The first orientation focused 

on the overall financial system and is aimed at limiting the macroeconomic costs of episodes 

of financial distress. Such an approach is viewed as the aggregate risk depending on the 

overall behavior of financial institutions, and their interconnection, and exposure to 

(endogenous). The second orientation is subsequently recognized by many researchers and 

policy makers, and addresses the risks outside the financial system (exogenous) and focused 

on the individual agents who are primarily related to asset prices, credit market conditions 

and other economic activities.  

In parallel, the use of the term remains ambiguous. In some situations the term is used 

interchangeably with prudential approach in order to limit the impact of procyclicality in the 

financial system as a major cause of financial instability. In other cases it is still unclear in 

terms of benefits designed to indicate the approach to address widespread or systematic-

systematic risk.  

The definition of "macro-prudential" 

In economic literature there is no single, precise, uniform definition of "macro-

prudential". Basically, the definition varies depending on the needs of research, although in 

fact can elaborate several common characteristics most definitions. (Future Group of Thirty, 

2010)  

1. "Macro-prudential" seeks to monitor, assess and provide appropriate policy 

responses to the development of the financial system as a whole rather than 

focusing on individual financial institutions or to single isolated policy measures,  

2. Macro-prudential "aims to improve the resilience of the financial system and to 

mitigate systemic risks that arise and propagate in the internal financial system 

through the relationship of institutions on the basis of joint exposure to shocks 

and trends of behavior of financial institutions in the pro-cyclical situations in a 

way to increase extreme financial cycles  

3. Macro-prudential "used on a regular basis a lot of tools to control the degree of 

solvency required to mitigate pro-cyclical tendencies, but they are applied in 

order to reduce systematic risk and increase resilience of the financial system to 

absorb this risk,  



   
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49 

4. Recognizing the complementary nature "macro-prudential" in other areas of 

economic policy, supervisors responsible for implementing macro-prudential 

policies, either through a new coordinating organization or as part of existing 

institutions, must inform and be informed of the monetary, fiscal and other 

government policies, and to give primary responsibility of other entities in these 

areas.  

Borio (2009) the most prominent advocate in the BIS survey "macro-prudential", gives the 

following definition: "The basic definition of "macro-prudential" a belief or perspective of the 

regulatory and supervisory arrangements." On the premise of the basic definitions, he 

defines three basic functions of access control and surveillance "macro-prudential", referring 

to the objectives, focus and risk characterization.  

By the same author, other definitions out of context BIS have such importance. He cites 

two interpretations, the first "macro-prudential" seen as a synonym for any effective policies 

to promote financial stability and limit systemic risk, noting that such a definition is too 

broad, and before they could be used as a "policy of financial stability. Further, argues that 

any policy can have significant impact on financial stability, citing, monetary and fiscal 

policy. According to him, the original term to promote a different use of prudential tools in 

the direction of the search for better financial stability. (See, Borio, 2009)  

The second view sees "macro-prudential" as a synonym for any effective policy or just as 

any regulatory and policy relating to too many big problems are the same or neglect, or 

Systematic important financial institutions (SIFI-s). For each individual financial institution 

can be "systematically unimportant" but collectively may be "systematically important" 

always when there is a possibility exposure to risk, no matter if in question assets or debt. 

This definition does not recognize the time dimension of the problem and ignores the 

correlation between exposures to all institutions.  

Also, the economic literature is therefore considered that the definition of "macro-

prudential" can be distinguished on several grounds, as a criterion for success, a balance 

between aggregate and sector approach, a balance between rules and discretion.  

Objectives "macro-prudential" 

"Macro-prudential" focuses on the interaction between financial institutions, markets, 

infrastructure and the wider economy. (Committee on the Global Financial System, 2010). 

Determination macro-prudential goals require the prior definition of systemic risk. There are 

many definitions of systemic risk. Thus, Ferguson (2010) defines systematic risk "as a 

situation characterized by the following three basic criteria: 1) some important set of 

financial asset prices are sharply separated from the base, or (2) the availability of credit 

market functioning in the country and perhaps internationally a significant distortion, with 

the result (3) the aggregate spending deviates (or is likely to deviate) significantly above or 

below the capacity of the economy to produce.”  

This definition of systemic risk caused some confusion among many, that ambiguity 

causes (difference from base rates) with effect (distortion of financial markets, credit 

availability and aggregate consumption). Besar, D., and other authors (2009/2010) instead of 

the previous proposed definition that covers non-financial and financial systematic risk, "the 



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50

systematic risk conjunctures when the initial disturbance transmitted through the 

interconnections that link businesses, households and financial institutions with each other , 

leading to the result of failure or degradation of these networks."  

Analogous to the previous definitions, Milne (2010) provides a definition of financial 

instability, indicating that the systematic risk occurs when there is "widespread collapse of 

financial flows." At the same time, it means the result, but not necessary materialization of 

systemic risk of the financial system. Because this risk can be achieved in one part of the 

financial system (example market distortions derivatives 2005 years, when Ford and General 

Motors lost its investment rating) and not extend to the entire financial system and not cause 

interruption of financial flows.  

IMF, FSB, BIS and G20 propose the following working definition of systemic risk: the risk 

of distortion of financial services that is caused by damage to all or certain parts of the 

financial system and has the potential serious adverse effects on the real economy (Caruna, 

2010) . As noted by Milne, the emergence of financial instability, has certainly resulted in the 

reduction of economic activity, but also involves systematic risk, although such a 

phenomenon inevitably leads to downward phase conjunctures cycle and transformation of 

economic activity, with a tendency to expand the systematic risk, the trend water in a deep 

recession, less depressed. Basically systematic risk comes from two sources: (Bank of 

England, 2009)  

1. There is a strong tendency to common financial firms, and firms and households, 

that is too much at risk in the period of the revival of the credit cycle and become 

too averse declining  

2. Individual banks usually do not take into account the spillover effects of their 

activities on the risk in the rest of the financial infrastructure.  

The immediate goal "macro-prudential"4 is to limit the risk of episodes of global financial 

troubles, her ultimate goal is to avoid or restrain those costs generated by the real sector. In 

addition to this, a key, a widely accepted goal, other indirect, practical goals, not less, 

important is:  

• Strengthening the resilience and the ability of the financial system from the 
impact of economic and other adverse aggregate shocks and stress,  

• Focus on the risk of the entire financial system and not on individual institutions,  
• Active causing limitation (mitigating) the financial risk, direct the focus on 

financial imbalances,  

• Limiting the risk of episodes of global financial troubles, to cover the costs of 
macroeconomics,  

• Enhancing the adaptability of the system stability and security of providing credit 
and other financial services, thereby focusing on finding sources of direct address 

systematic sources.  

Define macro prudential policy objectives, not simply whether they are formulated in 

broad and a qualitative sense.For very complex and multiple nature of the financial system 

is, the creators and theorists, serious challenges in the design and development of 

quantitative characterization of multiple operating stability.  

 

 



   
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51 

 Table 1. Macro-prudential objectives within the general objectives and instruments: a stylized 
comparison 

Objectives 

How to improve the resilience of the financial system to shocks 
cycle 

How to mitigate the 
financial 

The general approach to 

achieving goals 

Recalibrate micro tools taking into 

account the systematic risk 

Using dynamic tools in 

response to the financial 

cycles 

Key characteristics of the 

instruments 

They can be micro or macro style (i.e., 

institutional-specific elements in the 

implementation and calibration 

The tendency towards a 

macro-style: widely used, 

for example, all banks or 

markets 

The frequency 

adjustment 

Generally less or maybe once (for 

example, in response to structural 

changes in the system), and frequent 

change and possible adaptation 

They have a tendency to 

periodic monitoring and 

frequent adjustments in 

response to changes in the 

financial cycle 

Source: Report submitted by the Committee on the Global Financial System, Macro-prudential instruments and 
frameworks: a stocktaking of issues and experiences CGFS Papers No 38 2010 

Macro-prudential indicators 

Evans (2000) and Hilbers (2000) attempted to determine the definition of indicators  

macro-prudential stating that they are "indicators of health and stability of the financial 

system that can be used to assess its vulnerability to shocks." Macro-prudential indicators 

generally include micro-prudential indicators of the financial health of individual 

institutions and the macroeconomic variables that may affect the stability of the financial 

system. Total micro-prudential indicators express the state of the financial health of 

institutions, and macroeconomic variables are leading indicators that signaled the economy, 

the variables that could potentially affect the health of the financial system.  

 

Table 2. Summary indicators macro-prudential 

Aggregate macro-prudential indicators Macroeconomic indicators 

Capital Adequacy  
 Aggregate capital ratios 

The frequency distribution of capital ratio  
Asset Quality  
Lending institutions  

Sect oral credit concentration  

Foreign currency-denominated lending  

Nonperforming loans and provisions  

Loans for losses-making  public sector entities  

Risk profile of  assets  

Connected lending  

Leverage indicators  

Economic growth  
Aggregate growth rates  

The sector decline  
Balance of Payments  

The current account deficit  

Adequacy of reserves  

External debt (including the maturity 

structure)  

Terms of trade  

Composition and maturity of capital  
Inflation  

Volatility of inflation  

 



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52

Aggregate macro-prudential indicators Macroeconomic indicators 

Borrowing Entity  
Financial leverage, the ratio  
Corporate profitability  
Other indicators of corporate status  
Household indebtedness  

Management of safety  
Expense ratio 

Earnings per employee  

 Growth in the number of financial   institutions  
Earnings and profitability  

Return on assets  

Return on equity  

Income and expenditure  

 Structural indicators of profitability  
Liquidity  

Central bank credit to financial institutions  
Segmentation of interbank rate  
Deposits in respect of monetary aggregates 
Loans-to-deposits ratios  
Maturity structure of assets and liabilities (liquidity  assets 
ratios)  
Measures of secondary market liquidity  

Sensitivity to market risk  
Foreign exchange risk  

Interest rate risk  

Equity price risk  

Commodity price risk  
Market-based indicators  

Market prices of financial instruments, 

including equity  

Indicators of excess yields  

Credit rating  

Sovereign yield spreads  

Interest and exchange rates  
Volatility in interest and exchange rate 

Level of domestic real interest rates  

Exchange rate sustainability 

Exchange rate guaranteed  
Lending and asset price boom  

Lending  boom 

Asset price boom  
Contagion effects  

Trade spillovers  

Financial markets correlation  
Other factors  

Directed lending and investment 

Government's recourse on the 

banking system  

Arrears in the economy  

Source: Staff Team, Macro-prudential Indicators of Financial System Soundness led by Owen Evans, Alfredo M.  
Leone, Mahinder Gill, and Paul Hilbers IMF Washington DC 2000 

 

Macro-prudential instruments 

"Macro-prudential" uses a wide range of instruments to address and mitigate systemic 

financial risk, including the instruments used to achieve other economic goals. The emphasis 

is on developing and adapting existing instruments macro-prudential micro-prudential 

tools, aimed at strengthening prudential standards and limiting activities that may cause 

increased systemic risk. The standards and restrictions often vary, which requires their 

adjustment to alleviate the financial cycle. In this context, it is necessary to dynamically 

adjust the instruments (in accordance with the macro-financial stability), designing such a 

framework will be able to withstand and prevent financial "excesses" and episodic shocks 

that may arise under the influence of various externalities. (Momirović, 2010) 



   
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53 

In Table 3 Some examples are shown macro-prudential instruments relating to the main 

factors that may affect or limit the risk, as well as components of the financial system. These 

macro-prudential instruments are used to promote flexibility and limit exposure of the 

financial system from shocks and vulnerability affected by externalities.  

 

Table 3. Macro-prudential instruments-the vulnerability of financial systems and components 
 

V
u

ln
e
ra

b
il

it
y

 

 COMPONENTS OF THE FINANCIAL SYSTEM 

Bank deposit or recipients Non-
banking 
investors 

Securities 
Financial 

infrastructure Balance Sheet 
Debt 

Agreements 

L
e
v

e
ra

g
e
, 

⋅ Equity ratio 
⋅ Weight Risk 

Booking 

⋅ Restrictions on 
profit 

distribution 

⋅ Ceiling of 
credit growth 

LTV ceiling 

debt service / 

income 

ceiling 

maturity 

 
Margin / limit 

difference 

between the 

market value of 

securities and the 

value of their 

coverage 

 

L
iq

u
id

it
y

 o
r 

m
a

rk
e
t 

ri
sk

 ⋅ Liquidity / 
reserve  FX 

borrowing 

limit 
⋅ Currency-

harmonized limit 
⋅ Limitation of 

open FX 
positions 

Valuation 

rules (egg the 

IMF) 

The local 

currency or 

FX reserve 

Balance of the 

Central Bank 

Trade 

exchange 

C
o

n
n

e
ct

io
n

 

⋅ The 
concentration 

limits 

⋅ The systematic 
addition of 

capital charges 

⋅ Subsidiary 

   

Contracting 

opposite sides 

Source: Report submitted by the Committee on the Global Financial System, Macro prudential instruments and  
frameworks: a stocktaking of issues and experiences CGFS Papers No 38 May 2010 

Macro-prudential tools 

Macro-prudential tools for managing systemic risk can be centered on four groups: (The 

Group of Thirty, 2010)  

1. Avoiding the levels of leverage, systematic risk,  

2. Ensuring a sufficient level of liquidity to well functioning markets,  

3. Prevention of excessive credit expansion,  



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4. The regulation of market activities that could pose a systematic risk.  

Macro-prudential tools are designed to enable efficient control policies, with particular 

focus on improving the resilience of the financial system to systemic risk of stroke caused by 

economic shocks. Emphasis is on alleviation of internal risks arising from the interaction 

between companies and markets and pro-cyclical tendency of market participants. Tools 

"macro-prudential" not primarily intended to prevent the economic cycle or to eliminate risk 

entirely, but are targeted at the worst effects of systematic risk. Thus, macro-prudential tools 

are applied to all important institutions and activities based on the signals of macroeconomic 

indicators, regardless of whether they agree with it or not.  

There are two approaches in the implementation and enforcement macro-prudential 

tools, including:  

1. Variable approach,  

2. Fixed access.  

Variable access refers to the use of tools in situation countercyclical capital depreciation, 

by changing variables to adjust automatically, or through regular modification macro-

prudential auditor depending on macro-prudential indicators that fluctuate with economic 

cycles. These tools are mostly used to limit pro-cyclical tendencies and associated risks that 

increase the economic crisis.  

Fixed access refers to the use of tools such as the ratio of gross leverage, and the 

relationship between the ratios of financing; however, they do not have to be adjusted 

during the economic cycle. Their goal is to build a more resilient financial system to systemic 

risk of stroke.  

Macro prudential analysis  

Macro prudential analysis is required, according to IMF (2006), "Financial Soundness 

Indicators (guide.de defines the reference frame, which includes four elements:  

1. Assessment of risk in the financial system from shocks,  
2. Application of indicators of financial stability,  
3. Analysis of micro-interactions,  
4. Monitoring the macroeconomic situation.  

Macro prudential analysis focuses on factors that may threaten the stability of the 

financial system and the interrelationship between macroeconomic and financial stability. 

This further implies the ability to timely detect and identify factors that may threaten or 

cause vulnerable financial institutions to reduce credit risk, which if allowed to grow can 

cause an increased number of non-performing loans and lead to the inability of the banking 

system to perform its obligations.  

Approach to macro prudential analysis is to monitor indicators from different sources 

and trying to identify a wide range of indicators, which could indicate an increase of 

imbalance at the macro level and which may represent potential sources of financial 

hardship. An important aspect of the analysis is the inclusion of structural and qualitative 

information in macro prudential analysis. (Woolgord, 2001)  

 



   
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Figure 1. Components of macro prudential analysis  
 

 

Source: Davis, P., Macro prudential Analysis and financial soundness indicators Brunel University West 
London, yahoo.com/group/financial stability, 2010 

 

Application macro-prudential 

The implementation macro-prudential framework is necessary to consider the limitations 

macro-prudential access and choice of tools will be applied. Very important is whether the 

application should be based on rules or discretion. The application is based on the rule have 

better credibility and greater transparency, and lack of flexibility and the possibility of 

obsolescence due to market development. In addition, it may be more important to macro 

prudential regulation is based on our own attitude, that actors form their own policies based 

on their own judgments about the risks that are identified through recommendations macro-

prudential supervisor. It is important, point to the possibility of a combination of "limited 

discretion" and some rules in order to properly identify potential bubbles and realize their 

seriousness. Then, there is a problem macro prudential application framework, is first 

applied to the entire financial system or individual institution. The balance between different 

objectives macro-prudential policy will depend, in any case, the focus of policy makers on 

the overall market or individual institutions.  

 If the focus is on individual institutions within the larger economic cycle, then measures 

should be designed so that influences the balance of individual institutions. Greater focus 

should be to mitigate credit cycle, thereby protecting the real economy from financial sector 

activity, and in that sense, the greater the need for tools aimed at the entire system.  

Then, there is a problem of national or global approach. A new approach macro-

prudential control is much easier to implement at the international level to identify potential 

shocks than to answer them. It is important to have in early warning of the risks involved 

relevant international institutions (EU, G20, and IMF). It is important to what is already 

working on international level early warning exercises. The Basel Committee is already 



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working on developing tools to strengthen macro-prudential both sources of systematic risk, 

and developing tools to improve the resilience of individual institutions through counter-

cyclical safety at the micro level, as a framework for the protection of the economy at the 

macro level. Regardless, the international macro prudential framework is probable; in the 

future the main focus will be on a strong national government oversight and accountability 

for individual institutions and the management of national economies. Efficient 

implementation macro-prudential framework includes the necessary institutional 

adjustments and international coordination, with a clear mandate, accountability and 

transparency.  

Instead of conclusion  

On his way evolutionary, since the late seventies to the occurrence of major financial 

crises in the second half of 2008 year , the term "macro-prudential" was largely unknown and 

little used in the economic literature, they are talking about a small number of written works. 

Virtual appearance, after the crisis has caused a flood of usage of the term by all relevant 

institutions. Therefore, the focus has evolved to “macro-prudential ", especially in the works 

of the BIS, which has clarified the term by bringing him in connection with its antonyms 

"micro-prudential". In this, the narrow sense, closer to its origin "macro-prudential" refers to 

the use of tools macro-prudential the explicit aim of promoting the stability of the financial 

system as a whole rather than individual financial institutions.  

From the very goals macro-prudential resulting control quality, the clarification of the 

risk of bubbles and the concretization of corrective measures to be taken, both at national 

and global level. "Macro-prudential," seeks to reconcile the goals, knowledge and experience 

and control of various instruments. Identification of target macro-prudential simultaneously 

requires customization tools macro prudential tools that are used to achieve these goals. 

There are many specific tools that can be used for the conduct of other policies, but is an 

important selection of suitable, whose selection should be based on a detailed assessment of 

potential impacts of activities targeted at specific segments of the economy, primarily in 

signaling the appearance of systemic risk and stress. No matter which instrument or 

combination macro-prudential tool is selected, it is important to weigh their potential impact 

on the real economy and financial institutions. 

The idea of applying macro-prudential  aims to reduce pro-cyclicality and limit systemic 

risk, because they can have significant short-term impact on financial institutions, 

shareholders and all economic actors, which may reflect a temporary decrease in growth, 

increasing or reducing debt, reducing the return on capital and other economic variables.  



   
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57 

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Makroprudencijalni pogled na finansijsku stabilnost 
 

 

REZIME – U radu se ukazuje na ključne karakteristike „makroprudencijala“ novog okvira, 
prihvaćenog od svih svetskih relevantnih institucija, u nastojanju da se ublaže eksternalije koje mogu 
dovesti do ranjivosti finansijskog sistema i izazovu sistematski rizik. Nastanak termina datira još iz 
perioda sedamdesetih godina, koji je tokom vremena skoro bio zaboravljen, da bi ponovo vaskrsnuo, u 
drugoj polovini 2008, nakon velike globalne ekonomske krize. Ne postoji jedna univerzalna precizna 
definicija „makroprudencijala“, mada većina definicija sadrži nekoliko zajedničkih karakteristika. Sam 
fokus na sistematski rizik, definiše ključni cilj „makroprudencijala“, odnosno regulisanje i nadzor 
finansijskog sistema u celini a ne pojedinačne institucije. Da se ograniči rizik od globalnih finansijskih 
šokova, predlažu se različiti makroprudencijalni indikatori i instrumenti za procenu zdravlja 
finansijskog sistema i njene ranjivosti na šokove. U regulisanju i nadzoru finansijskog sistema koriste 
se makroprudencijalni alati koji su dizajnirani tako da omogućavaju efikasnu politiku nadzora, sa 
posebnim fokusom na poboljšanje otpornosti finansijskog sistema na udar sistematskog rizika. 
Makroprudencijalna analiza fokusira se na faktore koji mogu ugroziti stabilnost finansijskog sistema, 
kao i na međusobnu povezanost između makroekonomskih kretanja i finansijske stabilnosti. Primena 
makroprudencijala zasniva se na pravila ili diskreciju, na ceo fiansisjki sistem ili pojedinačnu 
instituciju, nacionalnom ili globalnom nivou. 

 

KLJUČNE REČI: "makroprudencijal", makroprudencijalni instrumenti, makroprudencijalni 
indikatori, makroprudencijalni alati, makroprudencijalna analiza  
 

 

 
Article history: Received:  25 March 2012 

Accepted:  17 April 2012