, interconnected behavior of financial institutions had implications for see claudio borio, towards a macroprudential framework for financial supervision and regulation? bank of international settlements working papers no. 128 ( basel, switzerland : bis, february 2003 ), https : / / www. bis. org / publ / work128. pdf. - 5financial stability and that even the behavior of a single large and complex institution could have implications for financial stability. this new system was also adopted at the international level. starting with the g20 summit in washington, d. c., in november 2008, the global community established the runway for a structural change. the subsequent g20 summit in london led to the establishment of the financial stability board ( fsb ), with a strengthened mandate as a successor to the financial stability forum. subsequently, including at the following summit in pittsburgh, world leaders agreed that the supervision of individual financial institutions had to account for the financial system as a whole, and it was recognized that shocks could originate from within the system and could spread to institutions with common exposures. in other words, the supervisory framework had to be macroprudential — focusing on mitigating systemic risk and accounting for macroeconomic consequences. 3 this reorientation was a defining part of the 2010 dodd - frank act, and internationally, in the basel iii accord. section 165 of the dodd - frank act, in particular, requires the board to implement heightened capital and liquidity standards, concentration limits, and stress testing — all to further the macroprudential purpose of preventing or mitigating risks to the financial stability of the united states. as i will discuss later, the board has followed through with rules such as the g - sib surcharge, the liquidity coverage ratio, and single - counterparty credit limits, just to name a few ; and, importantly, we have used macroeconomic considerations in calibrating some of these rules. an evolving regulatory perspective see busch and van rijin ( 2018 ), supra. - 6now, let ’ s fast forward to the present. over a decade has passed since the migration began toward a renewed focus on macroprudential regulation. our evolution did not stop with the pittsburgh g20 summit in 2009. indeed, global financial standardsetters have continued to adapt and learn as they implemented and updated regulations in line with the global consensus that was reflected in basel iii. i would like to highlight three important regulatory paradigm shifts

properties statewide. 22 this $ 75 million still will not solve all of ohio ’ s demolition needs, but leveraging public and private funds like the ag settlement or developing new national sources of bond financing could help address this local problem. 23 “ traditional suburban ” locations the last category of high - vacancy areas in the typology that i discussed earlier is “ traditional suburban ” neighborhoods. in contrast to the other two types of high - vacancy census tracts, these neighborhoods are more evenly spread across many metropolitan areas, illustrating that vacancy can be a problem in any community. furthermore, zip codes in the “ traditional suburban ” tracts do not tend to have a higher share of property vacancies resulting from foreclosure than other zip codes, which demonstrates that some neighborhoods are struggling with long - term vacancy issues even though they did not experience large numbers of foreclosures. while the vacancies faced by these suburban areas might not have been caused by foreclosure problems, the costs to neighborhoods are every bit as real. such areas represent additional opportunities to use the lessons of the recent crisis as local leaders strive to better understand the root cause of high vacancy levels and to target limited resources. consider the situation faced by oklahoma city. oklahoma city estimates that 8, 000 urban properties have been vacant for more than three years, and that the number of vacancies is increasing. 24 the city ’ s historically high housing vacancies mostly stem from cultural and demographic changes that have occurred over decades, as well as inadequate building code laws and enforcement. interestingly, the area did not experience the housing boom and bust that occurred in much of the nation. whereas national house prices rose by 89 percent between 2000 and 2006, prices in oklahoma city rose by only 35 percent. in addition, house prices in oklahoma city have been flat since 2006, a sharp contrast to the large drop in national home prices. but even though the vacancy rates in oklahoma city are not a direct result of the housing boom and bust, it may be that newer solutions developed for “ housing boom ” and “ low demand ” areas can be combined with traditional community development policy tools to help solve a problem that developed over decades. indeed, city planners recently concluded that the city could not tackle neighborhood revitalization without addressing vacancies. increasing costs for needed city services, reduced revenues, and barriers to growth resulting from deteriorating infrastructure all combined to lend urgency to these efforts. as has been the case in other cities, officials in oklahoma city