I would like to flag one more challenge in this domain, which will have an impact on the future of central banking. Part of the argumentation of having prudential policy as the first actor in the financial stability domain rests on its capability to be more targeted, while monetary policy is often seen as too blunt an instrument for these purposes.
First, the economic context in which arrears have mounted; second, the steps that are needed to restore  BIS central bankers’ speeches  1  sustainability to arrears cases; third, features of the different types of measure that are employed; and finally, some design aspects of debt modifications, where these are needed. Among many important details, three over-arching themes emerge in the discussion.