First of all, a central bank that fails to take the redistributional effects of its decisions into account will also be missing some aspects of the transmission mechanism, and may be less effective in pursuing its macroeconomic and financial stability objectives.
Measures should be consistent with the principles and should be peer reviewed. Recognition of the responsibilities of capital-exporting countries to monitor the risks run by host institutions with respect to currency mismatches, maturity transformation and leverage. The Financial Stability Board’s current initiatives for both the formal and shadow banking sectors are central in these regards.