Covid has bolstered the case for joined-up banking supervision, says BIS

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By Tyler Davies
04 Aug 2020

The coronavirus crisis has proven that central banks should have financial stability mandates encompassing both macro and micro-prudential policy goals, according to a new paper from the Bank for International Settlements.

There has long been a debate about how financial supervisory concerns could conflict with other public policy goals. 

A number of studies have pointed out, for example, that when central banks try to maintain price stability their actions can sometimes undermine the safety of the financial system. 

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