Indeed there are already areas in Exchange Control administration for example, in our payments system initiatives and in our financial sector development push, where the Government has committed to supportive reforms, not just in the legal system, but also in the Government’s own administrative processes. In the spirit of progressiveness, we also want the engagement with stakeholders to be constructive.
It may therefore make sense to assign banking supervision to the central bank alongside monetary policy. A possible consequence of having banking supervision and monetary policy under the same roof may be that supervisors shy away from placing a bank into resolution. After all, the central bank could postpone such decisions by providing liquidity support. That is the reproach made by some critics.