Secondly, even if these institutions and activities are treated with a compartmental approach and even if risks are considered separable, the linkages are such that the contagion cannot be avoided. Thirdly, globalisation has resulted in multifunctional global conglomerates warranting appropriate changes in structural aspects of domestic regulation.
Finally, it is argued that banks can still be treated separately for purposes of prudential requirements without necessarily linking them with the central bank, whose primary responsibility should be price stability. In considering the pros and cons of single regulator or unified regulation and multiple regulators, a major issue that needs to be addressed is: should banks be supervised by central banks?