4  BIS central bankers’ speeches  Avoiding conflicts of interest The literature on whether adding banking supervision to monetary policy creates conflicts of interest is not well developed.11 The concern is that a central bank which is also in charge of supervision would turn into a supervisor with access to central bank liquidity.
Since, along with the Kanto and Tokai regions, the Kansai region is pulling Japan's economy forward, I fully anticipate that your originality and inventiveness will continue to play a leading role. As for the Bank, we will continue to support your efforts through our conduct of monetary policy. BIS Review 132/2007  5