Targeting financial stability would compromise central bank independence, Lagarde says
Macro-prudential policy must be separate from monetary policy function
Adding a financial stability objective to central banks' mandates would be inconsistent with central bank independence, according to IMF managing director Christine Lagarde, as it violates all three foundations of central bank independence: a clear mandate, consistent performance and consensus on objective.
Delivering the dinner speech on the opening evening of the ECB's Forum on Central Banking in Sintra, Portugal, Lagarde said central bank independence rests on there being no ambiguity about
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
More on Financial Stability
Stress-test failures increase banks’ M&A scrutiny, Fed research finds
US lenders’ merger-related activity improves if they have failed tests, authors say
RBI forbids major bank from adding new customers digitally
Kotak Mahindra’s IT systems showed “serious deficiencies and non-compliances”, regulator says
Paul Tucker calls for collateral prepositioning
Central banks need to know what collateral banks have in advance, former BoE deputy says
Inequality exacerbates crises in several ways, Fed research finds
High-income households have a high tolerance for risk, which boosts the non-bank sector
Banks risk “significant” losses on private equity exposures – BoE official
Leverage, illiquidity and complex structures make funds vulnerable, executive director says
US faces real estate risks, Fed report warns
Banks face funding stresses while uncertainty over policy is a risk, Federal Reserve says
Asian policy-makers move to support currencies
Indonesia and Vietnam intervene in markets, while Japan, Korea and Malaysia issue warnings
MAS to spend $25 million on sustainable finance training
Singaporean central bank says local universities are providing more courses in the field
Most read
- ECB says iPhone is currently incompatible with digital euro
- Supervisors grapple with the smaller bank dilemma
- ‘Do I die, or do I survive?’ Officials reflect on Basel III complexity