Still, regardless of formal mandates, central banks are better positioned than most other government agencies to see and evaluate the emergence of asset bubbles, excessive leverage, and other signs of potential systemic vulnerability.
As firms (or markets) mature, external 2  BIS central bankers’ speeches  funds raised through bond and equity markets become more important. Also, while marketbased systems help alleviating recessions after financial crises, bank-based systems are more effective in smoothing the impact of “normal” business cycle fluctuations. 2.