A major shift in the US system of financial regulation in the aftermath to the financial crisis is ________.
A) an easing of monetary policy
B) a tightening of monetary policy
C) a shift from microprudential supervision to macroprudential supervision
D) a shift from macroprudential supervision to microprudential supervision

Question

Quizplus · Accepted Answer

In the aftermath of the financial crisis, there was a recognition that the previous system of microprudential supervision (focusing on individual institutions) was insufficient to prevent systemic risk. As a result, there has been a shift towards macroprudential supervision (focusing on the stability of the financial system as a whole). This includes the creation of new entities such as the Financial Stability Oversight Council (FSOC) to monitor and address systemic risks.

A Major Shift in the US System of Financial Regulation