The International Monetary Fund has in the context of its recent article IV consultation and Financial Sector Assessment Program (FSAP) welcomed the establishment by the BCL of the aforementioned indicators; those have served among others as a basis for the IMF assessment of the soundness of the financial sector, the systemic importance of which is highlighted in the respective reports.
In principle, the increasing global integration of financial markets, by reducing the scope for individual central banks to control domestic interest rates, could hamper the ability of monetary policy to stabilize prices and economic activity.