For me it is not important that it is the Riksbank, rather than any other authority, that is given the responsibility and the instruments to conduct  22  See, for example, Apel, Mikael and Carl-Andreas Claussen (2012), “Monetary policy, interest rates and risk taking”, Sveriges Riksbank Economic Review 2012:2, pp. 66–80, for an outline of the relationship between low interest rates, increased credit expansion and the boom on the property market in many countries that to a large extent lay at the centre of the crisis. BIS central bankers’ speeches  15  macroprudential policy. But it is important that someone is given responsibility, otherwise we will have created a framework that is no clearer than the one we have today. Exactly how responsibility should be allocated is an issue that I am not prepared to discuss further today. It is an issue that will have to wait until the Riksbank submits its response to the interim report of the Financial Crisis Commission later in the spring. References af Jochnick, Kerstin (2013), “Monetary policy and macroprudential policy”, speech, Länsförsäkringar, Stockholm, 25 January 2013, Sveriges Riksbank. Apel, Mikael and Carl-Andreas Claussen (2012), “Monetary policy, interest rates and risktaking”, Sveriges Riksbank Economic Review 2012:2, pp. 66–80. Borio, Claudio and Mathias Drehmann (2009), “Assessing the risk of banking crises – revisited”, BIS Quarterly Review, March, pp. 29–46. Englund, Peter (2011), “Swedish house prices in an international perspective”, The Riksbank’s inquiry into risks in the Swedish housing market.
The World Economic Forum Banking Strength index shows that the Chilean banking sector is very strong, as it ranks in the 11th place in the world. Let me finish by pointing out the relevance that the exchange rate derivatives market has had in favoring both financial stability and the conduct of the flexible inflation targeting scheme in Chile. This market is not as deep as it is in developed countries, but it has experienced significant growth of more than 10-fold since 1998, fueled in part, as I already mentioned, by the floating exchange rate regime. The role of pension funds has been significant as well, as they maintain a large positive foreign financial position, and keep hedging against exchange rate risk even above the regulatory requirements, especially in the aftermath of the last crisis. Thanks to these factors and a favorable regulation, Chile shows a high level of penetration of financial derivatives compared to other emerging economies and countries in the region. All this has contributed to a limited exchange rate mismatch of corporations. Today the share of firms with a mismatch over 10 percent of their assets is below 10 percent, down from around 20 percent before the Crisis. Hence monetary policy can be conducted in a countercyclical manner, without the need to manage the exchange rate. However, as the recent experience in developed countries has revealed, the rapid development of derivatives 5  markets also poses challenges to regulators due to their complexity and potential concentration of risks in a few entities.