The article discusses how macroprudential policies are important for maintaining financial stability by monitoring the entire financial system for risks. Unlike microprudential policies, macroprudential tools can help prevent systemic risks that can affect the entire financial system. By using these policies, financial markets can better manage risks and vulnerabilities. It is clear that macroprudential regulation is crucial for ensuring long-term stability in the financial system, not just for individual institutions. Pairing macroprudential policy instruments with financial stability objectives can help address the likelihood of systemic risk, which is often overlooked by many institutions.