6  BIS Review 165/2009  How did crisis management change the reserve bank’s balance sheet? 18. As the balance of payments came under pressure in Q3 of 2008–09 due to capital outflows, it became necessary to draw down reserves to finance the shortfall and maintain orderly conditions in the foreign exchange market. This led to corresponding contraction in the base (reserve) money.
We have separate regulators rather than one single multi-sector financial regulator mainly because there are qualitative differences between the four main types of financial markets in terms of the objectives of regulation and especially with regard to the supervisory methodologies and techniques employed by the regulators.