The central bank’s own financial market analyses, which are needed for monetary policy in any case, also provide valuable information for the purposes of system supervision, and can help to identify irregularities or tensions within the financial system at an earlier stage. Moreover, central banks are able to perform the necessary interpretation of prudential data within the context of the economy as a whole.
A sound banking system is one in which firms are well-diversified, have many different revenue sources, and do not concentrate their risks in one particular economic sector. This is one of the most important lessons we can draw from the financial crisis. Thank you for your attention. BIS Review 162/2008  3