See Farrel and Klemperer (2007). 4  BIS Review 36/2009  change, it is almost guaranteed that another will see a disadvantage and, therefore, seek to block the change. This results in a significant co ordination problem for the industry.
Ultimately however, all of these pillars of central bank financial soundness are dependent on the general understanding of the tasks and responsibilities of the central bank, and on a broad trust and acceptance on its activities and operations. If these are undermined, the provisioning and distribution rules, governance structures and other safeguards of central bank soundness are not on a durable basis.