Micro and Macro prudential measures:What are they? This topic has been requested by Kewbie Lau who is community member of LinkedIn community . To understand the macro prudential and micro prudential measures adopted by the central bank like the Bank of England, let me give you an analogy. For this, let me take you back to your school days and tell you a short story Imagine you are principal of a school in your current locality. It is a small school with just 5 rooms for each grade. Say, the grades Grade 1 - Grade 5. As a principal, you have an ambition that you want your entire school to excel in Maths, Science and Sports. For this you have given the targets to your individual class teacher and told them how you would monitor the performance of each class regularly. It is obvious to you that unless and until each class performs, your school will not be able to achieve its ambitions. In other words, the performance of the school is dependent upon each class/grade...