For example, in the recent debate over how to deal with institutional investors including hedge funds, most central banks do not have any rule-making or supervisory authority over them. In such cases, the central banks look to other authorities to make and implement proper policy responses.
There are also areas where no regulator or supervisor has formal authority, and the authorities are presently discussing how and whether to fill such gaps. However, stemming from central banks’ status as being players in markets, central banks have a strong interest in improving the functioning of markets.