3.1 After the financial crisis, the international community took steps to mitigate risks to financial stability, including through developing the appropriate macro-prudential frameworks and toolkits. This included seeking to enhance the resilience of systemically important institutions so that they could maintain the provision of critical economic functions through periods of economic stress.
3.2 CRDV altered the nature and design of some macro-prudential tools, and as a result the government intends to make certain legislative changes to ensure the current level of macro-prudential policy flexibility in the UK is maintained.
Other Systemically Important Institutions buffer
3.3 An important element of the macro-prudential framework are capital buffers designed to enhance the resilience of systemically important institutions. This reflects the important financial services these institutions provide, and the lessons learned from the financial crisis, including the final report of the Ind
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