I see a great deal of promise in these efforts, and I support continued work to develop these mechanisms to help small banks innovate through third-party partnerships. Another area in need of attention is in assisting small banks achieve similar treatment in their contracts in comparison to larger nonbank service providers and partners.
The use of macro-prudential policy instruments is not now considered to be a part of monetary policy proper. It is, however, generally accepted that central banks should play a key role in the development and use of macro-prudential tools. The use of macro-prudential policy instruments can be an essential complement to monetary policy.