Threats to financial stability can only be identified by looking at the financial system as a whole. This is the function of macroprudential supervision. By contrast, the supervision of individual banks is microprudential (banking supervision).
The authorities responsible for macroprudential supervision monitor the financial system at the national and supranational levels to identify systemic risks and analyse whether they pose a potential threat to financial stability.
Find out more about the key elements and instruments of macroprudential supervision on the Financial Stability Committee website.