The history of the Federal Reserve in the last couple of decades suggests that central bank effectiveness requires that it have a deep and practical understanding of how banking works and, what is more, genuine credibility with bankers. This kind of understanding and credibility can only be gained by direct interactions with banks and bankers.
As we look at the next ten-year time horizon, there are three major forces challenging banks: digital technology, bank resilience, and climate change. Since my experience stems from Europe, I refer here to European banks, but this largely applies to banks in general. Embracing digital technology is an essential part of future-proofing a bank.