As financial instrument become more complex; the boundaries between different types of financial market activity (lending, trading, insuring) become blurred; more claims become securitized and were exchanged in markets as traded instruments; and much financial activity became international in nature, blurring boundaries of responsibility among authorities. Now, the question is, what are the implications for bankers and regulators such as central banks?
The nominal current-account surplus is also increasing, but the increase has remained moderate because of the rise in crude oil prices until early 1997 and also movements in the income account.