The difference between micro$-$ and macroprudential regulation. $(15/100)$Discuss the various types of macro$-$prudential regulation as suggested by the Basel III framework.Explain the limited extent to which increased liquidity and capital requirements can prevent banking instability.For a bonus: Offer possible reasons why the tighter regulation of Basel III may be ineffective in containing excessive bank balance sheet growth and thus in preventing solvency risk escalation, or why the tighter regulation may be ineffective in limiting other forms of excessive credit risk taking of banks.