Macroprudential policy is about preserving stability in the financial system as a whole and limiting risks that may threaten it. For this reason, for example, an assessment is made of which banks are most important for the stability of the financial system and they are specifically monitored.
The Central Bank may use certain policy instruments to meet macroprudential objectives. These instruments are called macroprudential instruments. These include special rules on capital buffers for financial undertakings, which are rules set by the Central Bank regarding the capital that such undertakings must maintain in excess of the minimum capital requirement. This could be compared to rules for having a safety fund. Rules also apply in Iceland regarding a certain balance in foreign currency assets, liquid assets and more.