Central Banks Need More Power to Control Risk

Central banks will need more power to be able to supervise the banking sector if they are to play a greater role in maintaining financial stability in post-crisis world, according to a report by the Bank for International, says the press agency Thomson Reuters.

The report also shows that central banks should have control on issues such as the composition of bodies that will deal with development strategies, as their role expands.

“If central banks should play a key role in controlling systemic risk, they would also need to exercise stricter control over the institution of systemic importance”; is shown in the BIS report.