BIS central bankers’ speeches  3  whether financial stability is explicitly included in a central bank’s mandate or not, in view of the macro-finance linkage, as the central bank, it needs to prevent the build-up of excessive imbalances in the financial system while not detracting from price stability.
Additionally, policy makers should measure misalignments in asset prices with alternative indicators, notably economic agent’s financial leverage, taking the view that they are one source of systemic risks rather than they should simply be stabilized. Based on the results, they need to seek steps such as the use of macroprudential policy to curb the misalignments.