Proceedings of the International scientific and practical conference ―Oxford International Science Forum‖ (April 17-19, 2026) / Publisher website: www.naukainfo.com. - Oxford, United Kingdom, 2026. - 367 p.

13 as a whole. This led to the development of macroprudential policy focused on limiting systemic risks and smoothing financial cycles [1; 2]. At the same time, the parallel functioning of two regulatory levels has highlighted the problem of their coordination. Macroprudential policy is system- oriented and focused on long-term stability, whereas microprudential supervision concentrates on the financial soundness of individual institutions and often has a short-term horizon of influence. This creates potential contradictions in the application of regulatory instruments, especially in times of crisis. The theoretical rationale for the need to coordinate prudential policies is based on several key considerations. First, the problem of moral hazard leads financial institutions to excessive risk-taking under expectations of state support. In this context, macroprudential policy should create restrictive conditions at the system level, while microprudential supervision should ensure discipline at the level of individual banks [2]. Second, procyclicality of the financial system is an important issue. During periods of economic growth, banks tend to excessively expand lending, leading to risk accumulation, whereas in times of crisis there is a sharp contraction in credit activity. Macroprudential instruments, particularly countercyclical capital buffers, are designed to smooth such fluctuations, but their effectiveness largely depends on coordination with microprudential supervision [1; 2]. Third, systemic risk arises from the interconnectedness of financial institutions and contagion effects that cannot be fully captured within individual supervision. This necessitates the integration of macro- and micro-level approaches into a unified system of risk monitoring and response [3]. International practice demonstrates various models of coordination of prudential policies. In the European Union, a multi-level system has been formed that combines the activities of the European Systemic Risk Board and the Single Supervisory Mechanism operating under the European Central Bank. This model ensures the combination of centralized macroprudential regulation with national microprudential supervisory institutions [3; 4].