Macro-prudential regulation is intended to mitigate the systemic risk of the financial system as a whole, as opposed to traditional micro-prudential regulations that seek to preserve the soundness of individual financial institutions.  In fact, the financial crisis of the late 2000s made it clear that the regulatory framework needed to be complemented by a macro-prudential perspective, so that the risks and macroeconomic costs of financial instability can be managed. The macro-prudential regulation is therefore recognized as necessary to fill the gap between macroeconomic policy and the traditional supervisory approach to financial institutions. Priority areas identified under the macro-prudential approach include the Basel regulatory framework, the over-the-counter derivatives markets, the global systemically important financial institutions, and the shadow banking.