There are also weaknesses in the European framework. Some EU-level regulatory rules and procedures concerning the use of macroprudential tools are, as I see them, overly complicated and bureaucratic. For example, the European capital adequacy framework does not yet provide national authorities with fully satisfactory ways to increase residential mortgage risk-weights for macroprudential reasons.
The most important single reason for the founding of the Federal Reserve was the desire of the Congress to increase the stability of American financial markets, and the Fed continues to regard ensuring financial stability as a critical responsibility.