Hence, financial stability would have to be a joint responsibility, though the central bank could have a dominant role by virtue of it being the natural lender of last resort. However, there is a need to explicitly incorporate the financial stability role of the central bank into its statute to establish an accountability framework.
The challenge for a central bank is to achieve multiple objectives without losing credibility as a monetary authority solely responsible for price stability. This would be possible only if policies implemented by various stakeholders in financial stability are coherent.