Macroprudential regulation

Macroprudential regulation is a set of rules and regulations that banks, credit unions, and other lenders must follow in order to keep the financial system safe. These regulations help to protect us from things like banking crises and sharp downturns in the economy. To do this, macroprudential regulations limit how much money banks are allowed to lend out and how much risk they can take on. This helps to keep the system stable, so if something bad happens, banks don't go out of business and the economy doesn't suffer too much.