In view of the SBP's statutory mandate to ensure stability of the financial system, an elaborate Macroprudential Policy Framework (MPPF) has been instituted that aims to use appropriate prudential tools to proactively limit the key systemic risks to financial stability. The Framework details SBP's role in ensuring the financial stability, including the key aspects such as legal power and obligations, institutional arrangements, macroprudential tools at SBP's disposal and key considerations in the operationalization of these tools, systemic risk assessment practices, and, importantly, the communication of state of financial stability as well as recommendation of potential policy interventions. (Read the MPPF document here)