The strong regulatory push towards central clearing in recent years has clearly helped improve the safety and stability of the financial system. Among the many well-known advantages of central clearing are the reduction in counterparty credit risk, and the simplification of the network of exposures through multilateral netting and risk sharing, which also comes with a more efficient use of collateral.
Financial System Supervision In 2017, as in all past years, the financial system of our country continues to be stable as a result of prudent oversight and management by boards and management teams of the respective licensed financial institutions (LFIs). This is testament of our strong supervisory enforcements 1/4  BIS central bankers' speeches  and our continuous prudential consultations with the LFIs.