Central banks’ knowledge of the overall economy and financial system, and their information from payment and settlement systems and monetary policy operations, are valuable for the performance of the supervisory tasks. Conversely, for central banks, supervisory information can play an important role in the oversight of payment and settlement systems and of market infrastructures, and in managing liquidity crises.
Strong comments have been made against this view. The most often used arguments against central bank involvement in supervision have been the increasing importance of financial conglomerates and the blurring of the distinction between the three segments of the financial sector.