Furthermore, in setting monetary policy it is important to have a sense of how a change in policy is transmitted through the banking system to the broader economy. Also this information flows more easily if the supervisor is not too distant from monetary policy makers.
2  BIS central bankers’ speeches  Similarly, developments in the broader economy may first be reflected in supervisory information which may therefore be useful in setting monetary policy. Of course, the intensity of the debate about banking union reflects its importance. Thank you. BIS central bankers’ speeches  3