At the same time, the interaction between monetary policy and financial stability becomes more relevant as heightened financial complexity amplifies the widespread non-linearities in the dynamics of financial and economic variables and the consequences of interconnections between the financial and the real side of the economy. In these conditions, the risk of systemic crises increases.
The correct conduct of financial business requires competence and good faith on the part of intermediaries, as well as appropriate regulatory, supervisory and policy regimes.