New Financial Regulation Approach Aims to Prevent Future Crises
The article discusses a new way to regulate the financial sector to prevent future crises. Instead of just more rules, the focus should be on better rules that look at the stability of the whole financial system, not just individual banks or people. This approach, called macro-prudential regulation, aims to keep the financial system safe as a whole. In contrast, micro-prudential regulation focuses on individual banks and people.