Conclusion

Lourenco Miranda

CCAR is one of the most successful regulatory initiatives since the financial crisis of 2007–08. During the course of this book, we have shown how CCAR has provided regulators with an extremely powerful tool that combines both macro- and microprudential supervision. In fact, CCAR is an initiative that best marries these two fundamental and complementary regulatory and supervision frameworks. The introduction of the macroprudential regulation into the Capital Plan Rule and the CCAR process has created a positive effect on the financial system, one that can sustain long-term economic growth.

We have seen that managing risks in a calm and tranquil environment is as just hard as managing it during moments of stress. Consequently, concerns have been raised about the impact of macroprudential policies on the dynamism of financial markets when the economy is expanding and, in turn, on investment and economic growth. It is recommended, however, that macroprudential tools be employed more forcefully during inflated booms driven by over-borrowing, targeting the sources of externalities but preserving the positive contribution of financial markets to growth. CCAR cannot only be run during m

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