In today’s environment, the effective independence of monetary policy requires good regulation which ensures that the banking system as a  4  BIS central bankers’ speeches  whole remains stable and solid through the interest rate cycle, not only in times of tight monetary policy but also in times of very accommodative monetary policy.
Like the fiscal discipline of governments, which protects monetary policy from forms of fiscal dominance, effective banking regulation protects monetary policy from financial dominance. We can see how these prerequisites for independent monetary policy are as important for today’s accommodative monetary policy as they were for a disinflationary monetary policy when the concept of independence was developed.