Claudio Borio, the deputy head of the monetary and economic department of the Bank for International Settlements, cautioned future policymakers to beware the "paradox of financial instability".

In a speech delivered on 22 July, Borio noted that the system looks strongest precisely when it is most vulnerable. "What looks like low risk is, in fact, a sign of aggressive risk taking," he said, referring to the fact that high credit growth and asset prices are often tied with low risk premia