For many institutions, the risk weights have also declined notably over the years. BIS central bankers’ speeches  1  The Basel Committee, which proposes standards for financial regulation of banks at the global level, has recently published a consultative document proposing certain limitations on the use of internal models for calculating risk-weighted assets.
As such, the Bank of Mexico did not consider it necessary to raise policy rates during its recovery period, unlike many other Latin American central banks. These developments underscore an important point – that while central banks may benefit from coordination and cooperation, taking the same policy stance at the same time typically will not be the best choice for all central banks.