These policies must be considered carefully, as they are apt to increase the cost of financial intermediation and that of hedging risk. To illustrate the tradeoffs policymakers and regulators must manage when crafting such policies, I’ll next discuss in some detail a set of initiatives currently being implemented by  14  See Bank for International Settlements (2011).
It should also be noted that while the assessment methodology depends on interconnectedness, the specific measures employed will be continually reviewed and updated as appropriate. 15  For a description of these and related regulatory initiatives, see Bank for International Settlements (2010).