In many cases, including Australia, central banks have a general mandate to use their powers to promote financial stability, even if they are not the primary bank supervisor. A key consideration in all of this is the obvious synergy between central banking activities, prudential regulation, and crisis management and resolution responsibilities.
Later, after some years’ experience, the situation can be reviewed, and the question considered of whether supervision of business conduct should be transferred from the Bank of Israel to a new authority that would be established specifically for that purpose.