Naturally, there are reasons for these decisions; since a full discussion of these developments would take me too far afield here, let me just emphasize that the decisions are a good example of the complex way in which monetary, micro-  2  BIS central bankers’ speeches  and macro-prudential policy decisions interact.
The first objective-making sure financial institutions manage their material risks-is one of the central functions of a bank supervisor, and is fundamental to safety and soundness. But it is equally clear that the second objective-influencing a bank to make certain credit allocation decisions-is not the role of a banking regulator.