The Federal Reserve's monetary policymakers should turn their attention to "areas of concern" in financial stability including a "weakening of lending standards" as the Fed considers an exit from its extraordinary monetary easing, according to Jaime Caruana, general manager of the Bank for International Settlements (BIS).

Caruana says "the pricing of high-yield bonds" and the provision of covenant-light loans to "highly leveraged companies" are evidence of "excessive risk-taking", which "needs