Jaime Caruana, the general manager of the Bank for International Settlements (BIS), on Thursday said macroprudential policies could be a great help in dealing with systemic risks, but only if adopted with full understanding.

Caruana said the experience of the recent crisis suggested that pre-emptive prudential measures that seek to moderate credit and asset price booms can complement traditional monetary policy actions. However, he added, it was important to carefully analyse and understand the