Financial Policy Remit Our Financial Policy Remit links the mahi we are already undertaking back to our financial stability objective. It clearly reflects our purpose and our broadening expectations as a central bank and prudential regulator, embedding and formalising these expectations in one place.
Those instruments quickly gained popularity among practitioners as they promised to transfer credit risk to those who were supposedly in a better position to bear those risks while contributing to financial stability. As these instruments grew in complexity, existing risks were transformed into other risks and new risks emerged.