macroprudential

1 9.2

Rules or actions that try to keep the whole financial system stable

adjective
/ˌmækroʊpruˈdɛnʃəl/

Formal

: macroprudencial

Governments are increasingly focused on macroprudential measures to manage risks in the overall economy.

Examples

Implementing macroprudential policies helps to prevent systemic risk in the banking sector.
One of them is a well, the ACT is really trying to push regulation more to the macroprudential from the microprudential.
It does not address the issue of macroprudential capital regulation, i.e., the idea that capital requirements might have to vary over the business cycle.

Blog text (29)
The EU has established a macroprudential authority to monitor financial stability across all member states.

How Systemic

macroprudential

Formal

1 9.2

systemic

Specialized

70 6.5

Surface Forms

macroprudential positive

Morphology

macroprudential = prudential (semi-transparent) = macro + prudent + ial

The word is compositionally built from macro- plus prudential, but the specialized financial-system sense is not fully predictable from the parts alone.

Etymology

The word macroprudential combines macro- 'large' and prudential from prudent 'careful'. So macroprudential means rules or policies that look at the whole financial system and act carefully to protect it.