The main problem of its governance is that the decision-making mechanism has not reflected the rapidly evolving political and economic environment and principles used for allocating quotas when the Fund was established has been abandoned resulting in a small group of member countries easily forming majority votes and exercising veto powers.
Part of the challenge here is that many observers assume the main objective of macro-prudential policy is to stabilise asset price and credit growth rather than build financial system resilience. Fifth, a good infrastructure is required to support macro-prudential policy. The Reserve Bank has invested heavily in better measurement and analysis of housing and rural credit risk.