Central banks right for stability role

One regulatory organisation in each country should be responsible for overseeing the stability of the overall financial system and that organisation should be the central bank, new research argues.

A Systemic Regulator for Financial Markets, a paper issued by the Squam Lake Working Group on Financial Regulation, argues that each central bank should have an explicit mandate to maintain the stability of the financial system so that it properly balances its role as a systemic regulator with its

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