We are working closely with our international counterparts to develop coherent and comprehensive approaches, aided by the Basel Committee on Banking Supervision, the Financial Stability Board, the International Monetary Fund, and other institutions. 12 Finally, we must not forget that macroprudential policies will entail some costs as well as benefits. The magnitude of these costs remains a subject of debate.
But, as with all forms of regulation, we must find the right balance between overly strict supervision and laissez faire. I don’t know exactly where on the continuum that balance lies.