* * * It is always a pleasure to be in the company of microentrepreneurs and fellow advocates of the development of the microfinance industry in our country. I look at this annual event as a gift — an early Christmas gift.
The issue may be complicated by the fact that there could be a negative feedback loop from financial instability to macroeconomic instability, which in turn feeds back to the financial sector. Central banks potentially have conflicts of interest, being at the same time a participant and regulator of financial markets. Banks that are supervised by the central bank are often also counterparties.