Nature and legitimacy of the macroprudential policy

Nature and Legitimacy of the Macroprudential Policy This paper analyzes the concept of macroprudential policy by introducing the evolution of its development and legitimation. As the starting point, the economic crisis of 2008 that shocked has been chosen. It was the latest crisis that led to the understanding of the importance of macroprudential policy measures in ensuring financial stability. As a result, at the request of the European Commission the report by the jacques de larosière group of experts not only gave a detailed account of the causes of the global economic crisis but also issued thirty-one recommendations on the basis of which the responsible authorities of the european union and the member states have substantially modernized their systems for the stability of the financial system. The work presents this new regulation and the activities of the bank of Lithuania in the field of macroprudential policy implementation. The first part is devoted to the presentation of macroprudential policies until 2008, while the second half presents the valid and current regulation of macroprudential policy. As a result, there is a clear contrast between the former and the existing legal regulation, not only listing the changes that have taken place in politic