Capital buffers and the micro-macro nexus

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Capital buffers and the micro-macro nexus

FSI Briefs | No 24 | 10 July 2024by Rodrigo Coelho and Fernando RestoyPDF full text (467kb) | 14 pagesHighlightsTogether, microprudential and macroprudential policies contribute to financial stability.Frictions across the macro-micro policy divide may emerge due to the reliance on a single instrument – banks' minimum capital targets – to achieve distinct objectives.

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